IREB Illinois Real Estate Broker Examination - Set 4 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A buyer in Aurora reviews a title commitment for a residential property and discovers a recorded but unreleased mortgage from a prior owner. The mortgage was paid off years ago but never formally released by the lender. Which of the following BEST describes the typical resolution at closing?

Buyer accepts the unreleased mortgage as personal liability

Title company forces lender to fund the buyer's new loan

Seller obtains a Release of Mortgage from the prior lender and records it

Buyer must file a quiet title action before closing

Question 42: Illinois follows a recording system that protects subsequent purchasers who pay value, take in good faith without notice of prior unrecorded interests, and record their own deed first. Which of the following BEST identifies the Illinois recording approach?

Pure race recording with no notice consideration

Race-notice combining notice and recording

Pure notice without regard to recording order

Torrens system of state title registration

Question 43: A title insurance policy issued to a property owner in Naperville covers defects existing at the policy date that were not excluded. Which of the following BEST describes the typical duration of an owner's title insurance policy?

Annual coverage requiring renewal

Coverage only until the next sale

Coverage for ten years from policy date

Coverage continues for the duration of ownership

Question 44: A title commitment shows that the title to a Lincoln Park property is subject to a recorded easement, but a title insurer is willing to insure the title despite the known easement. The buyer's contract requires marketable title. Which of the following BEST describes the distinction between marketable title and insurable title?

Marketable title means free from reasonable doubt; insurable means insurer is willing to cover

Marketable and insurable are exactly the same in Illinois law

Marketable title means insured; insurable title means uninsured

Marketable title applies only to commercial property

Question 45: A buyer at closing in Springfield receives a deed conveying title and pays the purchase price. The deed is delivered and accepted at closing but is not recorded for several weeks. A subsequent purchaser without notice acquires the same property from the seller and records first. Which of the following BEST describes the priority outcome under Illinois law?

First buyer prevails because of earlier delivery date

Second buyer prevails as bona fide purchaser who recorded first

Both buyers share priority equally

Court must order partition between buyers

Question 46: At closing on a residential property in Schaumburg, the parties prorate real estate taxes between buyer and seller. Illinois bills property taxes in arrears, meaning current year taxes are paid in the following calendar year. Which of the following BEST describes the proration approach?

Taxes proceed with no proration at closing

Seller credited for buyer's portion of advance taxes

Buyer credited for seller's share of unpaid taxes

IDFPR sets the exact proration amount

Question 47: Illinois follows the lien theory of mortgages and uses judicial foreclosure under the Illinois Mortgage Foreclosure Law. Which of the following BEST describes the foreclosure process in Illinois?

Judicial foreclosure with court oversight and sheriff sale

Non-judicial foreclosure through power-of-sale

Administrative foreclosure through IDFPR proceedings

Self-help foreclosure by lender notice alone

Question 48: A buyer purchases a property at a Cook County sheriff's sale following residential mortgage foreclosure. The buyer expects to receive the property after court confirmation of the sale. Which of the following BEST describes the borrower's rights during the redemption period?

Borrower must vacate immediately after sheriff sale

Borrower has no remaining rights after sheriff sale

Borrower may file new bankruptcy to delay confirmation

Borrower may redeem by paying full amount due to lender

Question 49: A residential mortgage borrower in Bridgeport agrees to transfer title to the lender voluntarily in lieu of completing foreclosure. The borrower has junior liens from a home equity line and a judgment creditor. Which of the following BEST describes the effect of the deed in lieu of foreclosure?

Extinguishes the senior mortgage but not junior liens

Extinguishes all junior liens automatically

Requires court approval before becoming effective

Triggers automatic license discipline for the licensee

Question 50: An Illinois resident dies intestate, leaving a surviving spouse and one adult child. Under the Illinois Probate Act, how is the deceased's estate distributed between the spouse and the child?

Spouse takes the entire estate

Spouse takes one third; child takes two thirds

Spouse takes one half; child takes one half

Child takes the entire estate

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