IREB - Illinois Real Estate Broker Examination

Question 21: A landlord and tenant in Aurora sign a written lease for an apartment with a fixed beginning date and ending date one year later, after which the lease automatically terminates without further action. Which of the following BEST identifies this leasehold estate?

Tenancy at sufferance after holdover

Periodic tenancy month to month

Tenancy at will of either party

Estate for years with fixed term

Question 22: A commercial tenant in Chicago leases space under a contract that requires the tenant to pay base rent plus its proportionate share of property taxes, insurance, and common area maintenance for the building. Which of the following BEST identifies this type of lease?

Gross lease with landlord paying expenses

Triple net lease with tenant paying expenses

Percentage lease with rent tied to sales

Ground lease for vacant land only

Question 23: A tenant in a Chicago apartment vacates at the end of his one-year lease but continues paying monthly rent that the landlord accepts without signing a new lease. Which of the following BEST describes the leasehold status after the initial term ends?

Periodic tenancy from month to month

Estate for years renewed for one year automatically

Tenancy at sufferance subject to immediate eviction

Tenancy at will terminable on demand

Question 24: A residential tenant transfers her entire remaining leasehold interest to another person for the balance of the lease term, with no portion of the term reserved to herself. Which of the following BEST identifies this transfer under standard landlord-tenant terminology?

Sublease of less than the entire term

Novation releasing the tenant entirely

Assignment of the entire leasehold

Surrender by mutual lease termination

Question 25: A long-term tenant under a five-year lease in Schaumburg fails to pay rent for two consecutive months. The landlord wishes to begin formal proceedings to recover possession. Which of the following BEST identifies the initial step under Illinois law for nonpayment of rent?

File an eviction complaint immediately

Issue a ten-day notice for lease violation

Issue a thirty-day notice to vacate the unit

Issue a five-day notice to pay or quit

Question 26: A licensed broker in Chicago is authorized by a client to perform one specific transaction, namely the sale of the client's Lincoln Park condominium. The broker has no authority to bind the client in other matters. Which of the following BEST identifies this scope of agency?

Universal agency for all purposes

Special agency for one transaction

General agency for ongoing business

Apparent agency by estoppel

Question 27: A buyer signs a written buyer brokerage agreement with an Illinois firm at the first substantive meeting with the firm's licensee. Following the NAR Sitzer-Burnett settlement effective August 2024, which of the following BEST describes the post-settlement practice for buyer agreements?

Optional after first showing for REALTOR members

Prohibited under the NAR Code of Ethics

Required only for purchases over one million dollars

Required before showing property by REALTOR members

Question 28: A property owner in Hyde Park executes a power of attorney appointing a trusted friend to convey a specific real estate parcel on the owner's behalf. The instrument is signed and notarized. Which of the following BEST describes the additional step required under Illinois practice?

Recording with the county where the property sits

Approval by IDFPR before use in transactions

Annual renewal through the secretary of state

Filing of original with the Illinois Supreme Court

Question 29: A buyer working with a seller's agent at a Chicago open house asks the agent whether the seller would accept less than the asking price. The buyer has signed no agreement with the agent. Which of the following BEST identifies the buyer's status with respect to the agent?

Client owed full fiduciary duties

Subagent of the listing brokerage

Customer owed honesty and material fact disclosure

Dual agent representing both parties

Question 30: A homeowner appoints a real estate firm in writing to represent her in selling her Schaumburg residence, signing a listing agreement that creates the agency relationship through clear express terms. Which of the following BEST describes the method of creating this agency?

Implied agency by conduct of parties

Express agency by written agreement

Ratification of unauthorized prior act

Estoppel based on apparent authority

Question 31: A homeowner in Evanston signs a listing agreement granting the brokerage the right to earn a commission on any sale of the property during the term, regardless of who procures the buyer. Which of the following BEST identifies this type of listing?

Exclusive right to sell listing

Exclusive agency listing

Net listing disfavored in Illinois

Open listing with multiple brokers

Question 32: A homeowner enters into a listing agreement where the broker is entitled to commission only if the broker brings the buyer, and the seller may sell directly to a buyer the seller finds without owing commission. Which of the following BEST identifies this type of listing?

Exclusive right to sell listing

Open listing with multiple brokers

Exclusive agency listing

Net listing disfavored in Illinois

Question 33: A seller in Oak Park engages multiple brokers under separate non-exclusive arrangements, where each broker may attempt to sell the property and only the broker actually procuring the buyer earns commission. Which of the following BEST identifies this type of listing?

Net listing disfavored in Illinois

Exclusive right to sell listing

Exclusive agency listing

Open listing with multiple brokers

Question 34: A seller proposes that the broker take any amount the property sells for above a stated net figure as commission. The broker would keep the excess and the seller would receive only the net. Which of the following BEST describes the Illinois treatment of this listing structure?

Mandatory under Illinois real estate law

Heavily disfavored and risky for the broker

Permitted with full informed disclosure

Required for all luxury real estate listings

Question 35: A buyer in Lincoln Park signs a written buyer brokerage agreement with a firm specifying the agent's authority, term, and compensation arrangement. Which of the following BEST describes the typical effect of this agreement on the buyer-firm relationship?

Authorizes firm to sign contracts unilaterally

Eliminates seller-side disclosure requirements

Transfers commission liability to the listing firm

Creates a fiduciary agency between buyer and firm

Question 36: A licensee representing a seller in Wicker Park learns from the seller that the seller must move within thirty days due to a job transfer and would accept ten percent below the asking price. The buyer's agent asks during negotiations how motivated the seller is. Which of the following BEST identifies the listing licensee's duty?

Disclose seller's motivation to encourage offer

Decline representation when learning motivation

Maintain confidentiality of seller's information

Inform the buyer's agent of acceptable price

Question 37: A real estate licensee follows the lawful instructions of her seller-client and refuses to follow instructions that would require violating the Illinois Human Rights Act. Which of the following BEST identifies the fiduciary duty the licensee is honoring through her refusal?

Obedience limited to lawful instructions

Accounting for client funds received

Confidentiality of personal information

Care exercised with reasonable diligence

Question 38: A licensee receives an earnest money deposit on behalf of a seller-client. The licensee promptly places the funds in the brokerage's special account and provides a written receipt to the buyer. Which of the following BEST identifies the fiduciary duty the licensee is honoring?

Loyalty to client's interests above own

Disclosure of all material facts

Care with reasonable professional skill

Accounting for funds belonging to others

Question 39: A licensee represented a buyer six months ago in purchasing a Naperville residence. The representation has ended. A third party now asks the former licensee what price the buyer's prior purchase actually closed at, off the public record. Which of the following BEST describes the licensee's duty?

Confidentiality automatically ends upon closing

Confidentiality survives termination of the agency

Confidentiality applies only to current clients

Confidentiality is waived by passage of time

Question 40: Under 225 ILCS 454/15-75, Illinois licensees must provide minimum services that cannot be waived by the client. Which of the following BEST identifies a minimum service the licensee must perform in representing a client?

Guarantee a particular sale price

Pre-pay closing costs for the client

Accept and present offers as soon as possible

Insure the property against all losses

IREB Illinois Real Estate Broker Examination - Set 3 - Part 2

Question 21: A landlord and tenant in Aurora sign a written lease for an apartment with a fixed beginning date and ending date one year later, after which the lease automatically terminates without further action. Which of the following BEST identifies this leasehold estate?

Question 22: A commercial tenant in Chicago leases space under a contract that requires the tenant to pay base rent plus its proportionate share of property taxes, insurance, and common area maintenance for the building. Which of the following BEST identifies this type of lease?

Question 23: A tenant in a Chicago apartment vacates at the end of his one-year lease but continues paying monthly rent that the landlord accepts without signing a new lease. Which of the following BEST describes the leasehold status after the initial term ends?

Question 24: A residential tenant transfers her entire remaining leasehold interest to another person for the balance of the lease term, with no portion of the term reserved to herself. Which of the following BEST identifies this transfer under standard landlord-tenant terminology?

Question 25: A long-term tenant under a five-year lease in Schaumburg fails to pay rent for two consecutive months. The landlord wishes to begin formal proceedings to recover possession. Which of the following BEST identifies the initial step under Illinois law for nonpayment of rent?

Question 26: A licensed broker in Chicago is authorized by a client to perform one specific transaction, namely the sale of the client's Lincoln Park condominium. The broker has no authority to bind the client in other matters. Which of the following BEST identifies this scope of agency?

Question 27: A buyer signs a written buyer brokerage agreement with an Illinois firm at the first substantive meeting with the firm's licensee. Following the NAR Sitzer-Burnett settlement effective August 2024, which of the following BEST describes the post-settlement practice for buyer agreements?

Question 28: A property owner in Hyde Park executes a power of attorney appointing a trusted friend to convey a specific real estate parcel on the owner's behalf. The instrument is signed and notarized. Which of the following BEST describes the additional step required under Illinois practice?

Question 29: A buyer working with a seller's agent at a Chicago open house asks the agent whether the seller would accept less than the asking price. The buyer has signed no agreement with the agent. Which of the following BEST identifies the buyer's status with respect to the agent?

Question 30: A homeowner appoints a real estate firm in writing to represent her in selling her Schaumburg residence, signing a listing agreement that creates the agency relationship through clear express terms. Which of the following BEST describes the method of creating this agency?

Question 31: A homeowner in Evanston signs a listing agreement granting the brokerage the right to earn a commission on any sale of the property during the term, regardless of who procures the buyer. Which of the following BEST identifies this type of listing?

Question 32: A homeowner enters into a listing agreement where the broker is entitled to commission only if the broker brings the buyer, and the seller may sell directly to a buyer the seller finds without owing commission. Which of the following BEST identifies this type of listing?

Question 33: A seller in Oak Park engages multiple brokers under separate non-exclusive arrangements, where each broker may attempt to sell the property and only the broker actually procuring the buyer earns commission. Which of the following BEST identifies this type of listing?

Question 34: A seller proposes that the broker take any amount the property sells for above a stated net figure as commission. The broker would keep the excess and the seller would receive only the net. Which of the following BEST describes the Illinois treatment of this listing structure?

Question 35: A buyer in Lincoln Park signs a written buyer brokerage agreement with a firm specifying the agent's authority, term, and compensation arrangement. Which of the following BEST describes the typical effect of this agreement on the buyer-firm relationship?

Question 37: A real estate licensee follows the lawful instructions of her seller-client and refuses to follow instructions that would require violating the Illinois Human Rights Act. Which of the following BEST identifies the fiduciary duty the licensee is honoring through her refusal?

Question 38: A licensee receives an earnest money deposit on behalf of a seller-client. The licensee promptly places the funds in the brokerage's special account and provides a written receipt to the buyer. Which of the following BEST identifies the fiduciary duty the licensee is honoring?

Question 40: Under 225 ILCS 454/15-75, Illinois licensees must provide minimum services that cannot be waived by the client. Which of the following BEST identifies a minimum service the licensee must perform in representing a client?

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