Free Illinois Real Estate Practice Exam 2025

Licensees must notify the IDFPR within 10 days of any change in residence or business address. Failing to do so may lead to disciplinary action or missed legal notices.

All licensees, landlords, property managers, brokers, and owners must comply with Illinois Fair Housing laws. The law ensures that housing is available to all without discrimination.

The Governor of Illinois appoints the members of the Illinois Real Estate Administration and Disciplinary Board, which advises on policy and disciplinary matters.

Confidentiality is the one fiduciary duty that continues even after the agency relationship ends. Licensees must never disclose a former client’s confidential information unless required by law.

The Research and Education Fund in Illinois supports programs at colleges and real estate institutions aimed at improving industry education, research, and professionalism.

The Real Estate Recovery Fund serves to reimburse victims of licensee misconduct, such as fraud or embezzlement, when the licensee fails to pay a valid court judgment.

The minimum age to obtain a managing broker’s license in Illinois is 20 years old. Applicants must also meet experience and education requirements.

Actions that lead to a judgment must be filed within 2 years of the final ruling for a valid claim against the Illinois Real Estate Recovery Fund. Late claims are not eligible for reimbursement.

Disclosed dual agency is legal in Illinois only if both the buyer and seller give their written, informed consent. The licensee must explain limited fiduciary duties in writing.

To become a managing broker in Illinois, a licensee must complete 45 hours of managing broker pre-license education, which includes both classroom and interactive components.

The Illinois Real Estate Recovery Fund is intended to compensate the public when they suffer monetary losses from fraudulent or dishonest acts by licensees and are unable to collect through civil judgment.

“Military status” is not a protected class under Illinois Fair Housing law, although most other major categories—like race, disability, and sexual orientation—are included.

A broker preparing a deed for a client without legal training is engaging in unauthorized practice of law. In Illinois, brokers must refrain from drafting legal documents unless legally permitted.

The court ruling in Chicago Bar Ass’n v. Quinlan & Tyson clarified that licensees cannot draft legal documents, like deeds or contracts, unless they are standard forms or under attorney direction. This protects consumers from unauthorized legal practice.

The “address of record” is the official address on file with IDFPR, used for license notifications and legal correspondence. Licensees must keep it current to receive timely communication.

Illinois recognizes age 40 and over as a protected class under its fair housing and human rights laws. This means age discrimination protections begin at age 40.

The Illinois Human Rights Act does not cover income level or employment status as protected classes. It prohibits discrimination based on race, color, religion, sex, disability, familial status, national origin, age, marital status, and more.

In Illinois, an agent owes fiduciary duties—such as loyalty, confidentiality, and full disclosure—only to their client, not to customers. Clients have signed agreements, while customers are owed honesty and fairness.

When Mary and Jenny from the same brokerage represent the buyer and seller in the same transaction, Illinois law treats this as designated agency, not dual agency—provided each party has their own designated agent and disclosure is made.

Phil must initiate legal action against the broker within 2 years from the date of the final judgment that gave rise to the claim. This is the statute of limitation for claims against the Illinois Real Estate Recovery Fund.

Commingling—mixing client funds with personal or business accounts—is strictly prohibited under Illinois law. Violations must be addressed immediately and may trigger regulatory action.

When a buyer shows interest at an open house, the agent must immediately disclose their agency relationship, especially if representing the seller. Disclosure is required at the first substantive contact.

All Illinois real estate broker licenses expire on April 30 of even-numbered years. Renewal requires continuing education and timely fee payment to maintain active status.

Business cards must include the sponsoring broker’s name. Phrases like “Independent Agent” without affiliation are misleading and violate marketing rules.

Expired licenses may be reinstated within two years in Illinois, provided all fees and CE requirements are met. After two years, reapplication as a new licensee is required.

Any real estate ad posted online by an Illinois licensee must include the sponsoring broker’s name. Omitting this violates advertising regulations and may mislead consumers.

If escrow funds are mistakenly deposited into the operating account, the managing broker must correct the error immediately and report the incident to the Department. Commingling is a serious violation.

Any conviction, such as DUI, must be reported to IDFPR within the timeline required. Failure to report may result in disciplinary action or license suspension.

Illinois brokers must complete 12 hours of continuing education per renewal cycle. This includes core, elective, and mandatory topics covering legal compliance and ethics.

Changing transaction software does not excuse brokers from the duty to maintain records. Even if electronic access is lost, they must restore and retain copies to comply with the 5-year legal requirement.

Brokers in Illinois must retain real estate transaction records for at least 5 years. This requirement applies even when switching systems—files must remain accessible and complete throughout the retention period.

Ads like “Own this home for less than rent” without supporting data are considered misleading and prohibited. Illinois law requires all advertising to be honest, not exaggerated, and substantiated.

Licensees must not negotiate or accept side referral fees without going through their sponsoring broker. All compensation must be disclosed and handled by the brokerage to comply with Illinois law.

Allowing an unlicensed assistant to host open houses is a clear violation. Brokers are responsible for ensuring unlicensed individuals do not perform licensed activities, even in the broker’s absence.

Unlicensed employees may not engage in any activities that require a license—such as negotiating terms, hosting open houses, or showing properties. Violating this rule can result in penalties for both the broker and the assistant.

Escrow funds received must be deposited by the sponsoring or managing broker no later than the next business day. This rule ensures timely handling and prevents misuse or delays in safeguarding client money.

Illinois law requires licensees to disclose their license status to both clients and customers. While fiduciary duties apply only to clients, all parties must be treated honestly and fairly throughout the transaction.

If a broker can’t open a trust account immediately due to a bank delay, they must document the reason and avoid commingling funds. Timely opening and strict separation from personal/business accounts are essential for compliance.

A managing broker formally designated to supervise licensees in one or more offices is legally termed the designated managing broker. This role carries defined responsibilities under the Illinois Real Estate License Act.

When a managing broker discovers a licensee’s ad missing the brokerage name, they must immediately correct the violation and provide proper supervision. Reporting to the Department is not the first step unless there’s willful misconduct.