Illinois Licensing Prep Flashcards

Question

Residential Real Property Disclosure Act

Answer 1

Illinois requires that when a seller signs the standard listing agreement, they must prepare a disclosure document. Disclosure documents must be completed by the seller or seller's attorney or power of attorney. The licensee must never complete the disclosure forms.

Answer 2

A licensee must disclose this about the physical condition of the property about which the licensee has actual knowledge

Answer 3

Seller's disclosure requirements regarding the presence of radon on the property: - The seller must provide the buyer with An Illinois Emergency Management Agency (IEMA) pamphlet entitled Radon Testing Guidelines for Real Estate Transactions (or an equivalent pamphlet approved for use by IEMA) and The Illinois Disclosure of Information on Radon Hazards form. - The seller must give the pamphlet and disclosure form listed above (indicating that the property may present the potential for exposure to radon) to the potential buyer before the buyer is obligated under any contract to purchase residential real property. The Act does not obligate a seller to conduct any radon testing or mitigation activities. However, the parties may agree in their contract to mitigate.

Answer 4

Illinois homes are required to have at least one of these in operating condition within 15 feet of every room used for sleeping purposes. Homes that do not burn fuel for heat, ventilation or hot water; are not connected to a garage; and are not a source of carbon monoxide are not required to install.

Answer 5

Imposed when the title to a property is conveyed. The amount of a tax is $.50 per $500 of taxable consideration. Illinois imposes an additional tax of $.75 per $500 or portion thereof

Answer 6

The transfer tax is distributed as follows: - 50% to the Illinois Affordable Housing Trust Fund - 35% to the Open Space Land Acquisition and development fund - 15% to the Natural Areas Acquisition Fund

Answer 7

Broker Managing Broker Residential Leasing Agent - ONLY performs activities related to the leasing of residential real property

Answer 8

A sworn statement made by an unlicensed person associated with or an owner or member of a licensed real estate corporation, limited liability company, partnership, or limited partnership attesting that the unlicensed person is not actively directing or engaging in real estate activities as part of that association or ownership.

Answer 9

An agreement entered into between a licensee and IDFPR in conjunction with an administrative warning letter.

Answer 10

A minimum of 50 minutes of instruction through a course approved by the Division in a classroom, by interactive webinar, online distance education, correspondence or a home study course.

Answer 11

Each person who applies for renewal of their license as a managing broker or broker must successfully complete 12 hours of real estate continuing education courses recommended by the Board and approved by the Division.

Answer 12

Under Illinois real estate law, licensee compliance with CE requirements must be certified according to the following provisions: - Each renewal applicant must certify, on the renewal application, full compliance with the CE requirements of the law - The Division has the authority (in the context of compliance audits) to require additional evidence demonstrating compliance with the CE requirements. It is the responsibility of each renewal applicant to retain or otherwise produce evidence of compliance. - In the context of a compliance audit, the Division shall accept verification submitted directly from an education provider on behalf of a renewal applicant as proof of CE compliance. - Failure to comply with CE requirements is a violation of the Act and may subject a licensee to a citation or such other discipline as set forth in the Act and Illinois real estate law.

Answer 13

Under the Illinois code, this is any business, which finds, attempts to find, or offers to find, for any person who pays or is obligated to pay a fee or other valuable consideration, a unit of rental real estate or a lessee to occupy a unit of rental real estate, not owned or leased by the business.

Answer 14

Under Illinois law, this contract must include at a minimum, the following provisions: - The term of the contract. - The total amount to be paid for the services to be performed and a clear designation of the amount, if any, paid in advance of the performance of the services. - A statement regarding the refund or non-refund of the fee paid in advance, which must include all of the following: The precise conditions, if any, upon which a refund is based; The fact that the conditions shall occur within 90 days from the date of the contract (and this must be uniform in type of a size larger than that used for the balance of the contract); The fact that the refund MUST be paid no later than ten (10) days after demand, provided the check has been honored.

Answer 15

The Department may refuse to issue or renew a license, place a licensee on probation, suspend or revoke any license, reprimand, or take any other disciplinary or non-disciplinary action the Department deems necessary, or impose a fine as set forth in Article 20 of the Illinois Real Estate License Act of 2000 for any one or a combination of the following causes: - Fraud or misrepresentation in applying for or obtaining a license or license renewal. - Conviction of, plea of guilty or nolo contendere, to a felony or misdemeanor involving dishonesty, fraud, larceny, embezzlement, or obtaining money, property or credit by false pretenses, in Illinois or any other state or jurisdiction. - Inability to practice with reasonable judgment, skill or safety as a result of physical illness, including but not limited to, deterioration through the aging process or loss of motor skill, or mental illness or disability. (The Department can suspend the license, insist on a physical examination, and require the licensee to participate in rehab prior to reinstating the license). - Conducting real estate business in a retail establishment if not separated from the main retail business in a separate and distinct area. - Disciplinary action of another state or jurisdiction if at least one of the grounds for discipline is the same as or equivalent to one of the grounds for discipline in Illinois. - Engaging in real estate activity without a license or after the licensee’s license or temporary permit was expired or while the license was inoperative

Answer 16

- Cheating on or attempting to subvert a licensing exam or continuing education exam. - Aiding or abetting an applicant to subvert or cheat on a licensing exam or continuing education exam. - Advertising in a way that is inaccurate, misleading, or contrary to the Act. - Making substantial misrepresentation or untruthful advertising. - Making any false promises that are likely to influence, persuade or induce. - Pursuing a continued and flagrant course of misrepresentation or making of false promises through licensees, employees, agent, advertising, or otherwise. - Using misleading or untruthful advertising, or using trade name or insignia of membership in a real estate organization when the licensee is not a member. - Acting for more than one party in a transaction (acting as a dual agent) without written notice to all parties. - Representing or attempting to represent a broker other than the sponsoring broker. - Failure to account for or remit moneys or documents coming into his/her possession that belong to others.

Answer 17

Any person who is found working or acting as a managing broker, real estate broker, real estate salesperson, or residential leasing agent or holding himself or herself out as a licensed sponsoring broker, managing broker, real estate broker, or residential leasing agent without being issued a valid existing license is guilty of a Class A misdemeanor. On conviction of a second or subsequent offense, the violator will be guilty of a Class 4 felony.

Answer 18

In addition to the classes protected under the federal laws, Illinois has added these classes: - Age - Ancestry - Marital Status - Military Status - Sexual Orientation - Order of Protection Status - Unfavorable Discharge from Military Service in connection with employment, real estate transactions, access to financial credit, and the availability of public accommodations

Answer 19

Source of income was added to the already existing federal and state protected classes. Any broker who fails to comply with any of the provisions of this ordinance, will be punished by a fine in any sum

Answer 20

Came into effect on January 1, 2004. The purpose is to increase the supply for low and moderate income families in every jurisdiction. The act requires all areas meet at least 10% compliance level.

Answer 21

Ads with human models showing all one race, all able-bodied, all one gender are illegal.

Answer 22

In Illinois, lenders are prohibited from charging borrowers a prepayment penalty on a fixed rate loan with an interest rate greater than 8% per year.

Answer 23

Illinois statute holds that mortgage foreclosures must be accomplished through a court proceeding. That means that Illinois is a judicial foreclosure state.

Answer 24

The right to redeem property between the time of default and the foreclosure sale. The right is exercised within seven months after the date of service on the borrower or after first publication date, whichever is later.

Answer 25

There is NO statutory right of redemption in Illinois.

Answer 26

An option available when the borrower wants to cure the default (bring payments up to date) and reinstate the loan as if the loan had not been accelerated at all. - Can be exercised for 90 days after service of summons or publication date. - May be exercised only once every 5 years. - If reinstatement occurs, the lender must dismiss the suit and the mortgage continues in effect as if no foreclosure had been undertaken.

Answer 27

In Illinois, the time limit is six years

Answer 28

According to the Illinois Real Estate License Act of 2000, sponsoring brokers who are responsible for earnest money deposits for property sales (and security deposits for leases) MUST ESTABLISH escrow accounts in which to deposit the funds they have been given.

Answer 29

A proration method allowed by Illinois. With this method, the yearly charge is divided by 12 to determine a monthly amount. The monthly charge is then divided by the actual number of days in the month in which the closing occurs. The final number is the daily charge for that month

Answer 30

Under Illinois law, there must be a written property management agreement between the property owner and the broker in a property management relationship.

Illinois Licensing Prep Flashcards

(54 cards)