Course Orientation

Question 1

What is the main takeaway from the July 2024 lawsuit settlement by the National Association of REALTORS®?

Answer 1

A seller’s cooperative compensation is no longer to be stated on the Multiple Listing Service. Sellers are not forced to cooperate in a compensation split.

Question 2

What are REALTORS® required to have with all clients according to the July 2024 lawsuit settlement?

Answer 2

REALTORS® are required to have written brokerage agreements with all clients, including buyers.

Question 3

What does the Illinois Real Estate License Act (IRELA) require as of 2025?

Answer 3

All licensees are required to have all brokerage agreements in writing.

Question 4

What are the two main bodies of law governing real estate practice in Illinois?

Answer 4

The Illinois Real Estate License Act (IRELA) and the Administrative Code (‘The Rules’).

Question 5

When was the revised version of IRELA enacted?

Answer 5

The revised version of IRELA was enacted on January 1, 2025.

Question 6

When are the updated Rules expected to be available?

Answer 6

The updated Rules are not expected to be available until July 1, 2025.

Question 7

What should students do while enrolled in the course regarding updates?

Answer 7

Students should check the section often for future updates to ensure they have the most current information available.

Question 8

Brokerage

Answer 8

Brokerage is the business of bringing people together in a real estate transaction.

Question 9

Market

Answer 9

A market is a place where goods can be bought and sold.

A market may be a specific place, such as the village square, or it may be a vast, complex, worldwide economic system for moving goods and services.

In either case, the function of a market is to provide a setting in which supply and demand can establish market value, making it advantageous for buyers and sellers to trade.

Question 10

Real Estate Licensee

Answer 10

A real estate licensee acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property.

A RE licensee may be the agent for the buyer, the seller, or both.

Question 11

Sponsoring Broker

Answer 11

-Employ licensees
-conduct brokerage services

**ultimately responsible for the actions of all licensees working under the umbrella of the particular firm.

Question 12

Supply and Demand

Answer 12

The forces of supply and demand In the market determine how prices for goods and services are set.

When supply increases and demand remains stable, prices go down; when demand increases and supply remains stable, prices go up.

Greater supply means producers need to attract more buyers, so they lower prices. Greater demand means producers can raise their prices because buyers compete for the product.
Supply and Demand in the Real Estate Market.

Two characteristics of real estate govern the way the market reacts to the pressures of supply and demand: uniqueness and immobility.

Uniqueness means that no matter how- similar two parcels of real estate may appear, they are never exactly alike. Each occupies its own unique geographic location, and two properties are never exactly the same inside.

Immobility refers to the fact that property cannot be relocated to satisfy demand where supply is low, nor do buyers necessarily make relocation decisions based on greater housing supply in a certain locale. For these reasons, real estate markets are local markets. Each geographic area has different types of real estate and different conditions that drive prices.

Factors that tend to affect the supply side of the real estate market’s supply and demand balance include the labor force, construction and material costs, government controls, and financial policies.

Question 13

Appraisal

Answer 13

Appraisal is the process of rendering an opinion of a property’s market value based upon established methods and the appraiser’s professional judgment.

The appraisal substantiates the sale price of the home and assists the lender in determining maximum loan amount.

Also used for refinancing and insurance purposes.

**in order to perform appraisals in IL, an appraiser license is required.

Question 14

Property Manager

Answer 14

In IL, Property Management requires a RE license, and an individual RE licensee must perform property management services under the supervision of his/her sponsoring broker.

Question 15

Financing

Answer 15

Financing is the business of providing the funds that make real estate transactions possible.

Most transactions are financed by means of mortgage loans or trust deed loans secured by the property. Individuals involved in financing real estate may work in commercial banks, mortgage banking, or mortgage brokerage companies.

A growing number of real estate brokerage firms affiliate with mortgage brokers to provide consumers with one-stop-shopping real estate services.

**Mortgage brokers and the loan officers working for them must be licensed and registered in Illinois.

Question 16

What is the largest trade organization serving the real estate business?

Answer 16

National Association of REALTORS® (NAR)

NAR sponsors various affiliated organizations and offers professional designations to members.

Question 17

What must one do to be entitled to use the term REALTORS®?

Answer 17

Be a member of the National Association of REALTORS® (NAR)

Members subscribe to a Code of Ethics.

Question 18

Name three affiliated organizations of the National Association of REALTORS® (NAR).

Answer 18

• Counselors of Real Estate (CRE)
• Institute of Real Estate Management (IREM)
• REALTORS® Land Institute (RLI)

NAR has several affiliated institutes, societies, and councils.

Question 19

What is the National Association of Real Estate Brokers (NAREB) known for?

Answer 19

Advocating for equal housing opportunities

NAREB was formed in 1947 by African-American real estate professionals.

Question 20

What is the mission of the National Association of Hispanic Real Estate Professionals (NAHREP)?

Answer 20

Advance sustainable Hispanic homeownership

NAHREP educates and empowers real estate professionals serving Hispanic clients.

Question 21

What type of organization is the Asian Real Estate Association of America (AREAA)?

Answer 21

Nonprofit professional trade organization

AREAA promotes sustainable homeownership in Asian-American communities.

Question 22

List two professional associations in the real estate industry.

Answer 22

• American Society of Appraisers (ASA)
• National Association of Independent Fee Appraisers (NAIFA)

There are several professional associations that support various aspects of real estate.

Question 23

True or False: Members of the National Association of REALTORS® (NAR) can use the term REALTOR-ASSOCIATES® without being a member.

Answer 23

False

Only members of NAR can use the terms REALTORS® and REALTOR-ASSOCIATES®.

Question 24

Fill in the blank: The ___________ is the largest minority trade group in the real estate industry.

Answer 24

National Association of Hispanic Real Estate Professionals (NAHREP)

NAHREP focuses on Hispanic homeownership.

Question 25

What are members of the National Association of REALTORS® (NAR) expected to comply with?

Answer 25

Standards of practice and code of conduct of their organization ## Footnote Compliance ensures professional integrity within the industry.

Question 26

Name one certification offered by NAR.

Answer 26

* Certified Real Estate Brokerage Manager (CRB) ## Footnote NAR offers various professional designations to its members.

Question 27

Factors that tend to affect the supply side of the real estate market's supply and demand balance include ...

Answer 27

Factors that tend to affect the supply side of the real estate market's supply and demand balance include the labor force, construction and material costs, government controls, and financial policies.