Yha - Broker Pre-license Final Exam (125 Questions)

125 Questions | Total Attempts: 133

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Yha - Broker Pre-license Final Exam (125 Questions)

75-Hour Broker Pre-License Course Final Exam


Questions and Answers
  • 1. 
    In Illinois, mobile homes are generally considered
    • A. 

      Personal property

    • B. 

      Real property

    • C. 

      Trade fixtures

    • D. 

      Fixtures except when they have been permanently affixed to their foundation

  • 2. 
    An office building grosses $850,000 per year and has expenses of 35% of the gross. If the property is capitalized at 12%, what is its value?
    • A. 

      $552,566

    • B. 

      $297,166

    • C. 

      $6,630,566

    • D. 

      $4,604,166

  • 3. 
    A listing agent obtains a written offer with earnest money from a buyer client on a property that he has listed. At 2:00 PM the same day, a broker from a different office brings in a higher written offer without earnest money. At 7:00 PM the listing agent presents the offer from his own buyer client who accepts the offer. Later that week, the broker who submitted the higher offer runs into the seller and asks why he had not accepted his offer which was over list price. The seller said he never received the offer, but that he probably would still have selected the other offer because of the commission saved. Based on these facts, which of the following is correct?
    • A. 

      The listing agent violated the License Act because he did not present all offers.

    • B. 

      The listing agent did not violate the License Act because he represented the seller's interests.

    • C. 

      The seller does not have any recourse against the listing agent.

    • D. 

      The higher offer was not valid because there was no earnest money.

  • 4. 
    One economic characteristic of land that affects its investment value is called situs. Another name for situs is
    • A. 

      Scarcity

    • B. 

      Improvement

    • C. 

      Permanence of investment

    • D. 

      Area preference

  • 5. 
    Joe Pin rented a bowling alley. When he took possession under a 15-year lease, he installed the lanes, the ball returns, the pin-setters, and the electronic score boards. On the day before his 15-year lease ends,
    • A. 

      Joe must leave everything he installed because they are fixtures

    • B. 

      Joe can remove the trade fixtures

    • C. 

      Joe can remove the trade fixtures for up to 5 more days

    • D. 

      Joe can remove the trade fixtures for up to 10 more days

  • 6. 
    When owners buy shares of stock in a corporation that holds title to the building and they have a proprietary lease for their unit, they must own stock in a
    • A. 

      Cooperative

    • B. 

      Condominium

    • C. 

      Planned unit development

    • D. 

      Modular home

  • 7. 
    When homeowner's (who file jointly) realize a profit from the sale if their principle residence that does not exceed $500,000, the homeowner
    • A. 

      Will not pay capital gains tax if they are older than 55

    • B. 

      Will pay up to $250,000 capital gains tax

    • C. 

      Will not pay a capital gains tax

    • D. 

      Will pay a capital gains tax

  • 8. 
    Equity means
    • A. 

      Purchase price 2 years ago minus the mortgage loan balance

    • B. 

      Fair market value minus the owner's mortgage loan balance

    • C. 

      The total amount of the mortgage payments made since the purchase

    • D. 

      Assessed value for real estate tax purposes

  • 9. 
    A homeowner owns his home and the ground under his home. The homeowner owns a
    • A. 

      Cooperative

    • B. 

      Time-share use

    • C. 

      Townhouse

    • D. 

      Time-share estate

  • 10. 
    Which of the following are tax deductible?
    • A. 

      Real estate taxes on all property owned

    • B. 

      Mortgage interest payments on most 1st and 2nd homes

    • C. 

      Loan prepayment penalties

    • D. 

      All of the above

  • 11. 
    In Illinois, the law of agency
    • A. 

      Is found only in case law

    • B. 

      Does not govern between a broker and a client

    • C. 

      Is found in the Real Estate License Act of 2000

    • D. 

      Only applies between an attorney and his/her client

  • 12. 
    The principal can NOT be
    • A. 

      The buyer

    • B. 

      The agent

    • C. 

      The seller

    • D. 

      The prospective tenant

  • 13. 
    A Glen Ellyn homeowner tells his broker, "I want to clear $225,000 from the sale of my home. I'll hire you to sell my home on the following basis: sell the home for whatever you can get over $225,000 and keep the difference as your commission." This arrangement is
    • A. 

      A percent listing

    • B. 

      A violation of the Statute of Frauds

    • C. 

      Illegal

    • D. 

      A net listing

  • 14. 
    You can receive up to $250,000 of profit federal tax free on the sale of your personal residence only if
    • A. 

      You purchased the home before 1978

    • B. 

      You are married at the time of the sale

    • C. 

      You are age 65 or older on the closing date, and you re-invest the proceeds within 2 years

    • D. 

      The house was your primary residence for 2 of the last 5 years

  • 15. 
    A property escheats in Illinois when
    • A. 

      The property owner fails to pay real estate taxes for two years

    • B. 

      The property owner dies without a will and without any heirs surviving him

    • C. 

      The property is sold at a foreclosure sale

    • D. 

      The tenants are evicted and possession is returned to the owners

  • 16. 
    The golf course management gives a golfer permission to golf 18 holes on the golf course. The golfer has
    • A. 

      An easement to come upon the land

    • B. 

      A license to enter the land

    • C. 

      Riparian rights

    • D. 

      A servient tenement

  • 17. 
    The State of illinois exercises its right to take the real property of its citizens by the process known as
    • A. 

      Foreclosure

    • B. 

      Attachment

    • C. 

      Forcible detainer

    • D. 

      Condemnation

  • 18. 
    How many acres are contained in a 660' x 660' parcel of land?
    • A. 

      10 acres

    • B. 

      1 acre

    • C. 

      11 acres

    • D. 

      100 acres

  • 19. 
    Sam discovered that his Wheaton neighbor inadvertently installed a fence 3 feet over Sam's entire west property line. Sam is concerned that he may lose ownership right to the portion of his property enclosed by the fence due to
    • A. 

      Homestead laws

    • B. 

      Adverse possession

    • C. 

      The statute of limitations

    • D. 

      Littoral rights

  • 20. 
    The relationship between a principal and agent is called
    • A. 

      A fiduciary relationship

    • B. 

      An independent contractor relationship

    • C. 

      A customer/client relationship

    • D. 

      A dual agency relationship

  • 21. 
    A buyer who is being shown MLS listed houses by an Illinois real estate broker, but who has not signed a buyer agency agreement with the broker, is
    • A. 

      A client of the broker

    • B. 

      A customer of the broker

    • C. 

      An independent contractor

    • D. 

      A special agent

  • 22. 
    The best way for an Illinois broker licensee to avoid liability for misrepresentation when acting as an agent for a seller in the sale of real estate is to
    • A. 

      Disclose all material adverse facts about the physical condition of the property that are actually known by the licensee

    • B. 

      Use a rider in the sales contract that states that the buyer waives all claims of misrepresentation against the broker and the sales agent

    • C. 

      Carry sufficient professional liability insurance

    • D. 

      Attempt to shift the liability to the seller himself

  • 23. 
    In order to avoid undisclosed dual agency, especially when a buyer is working with a broker who has a listing in which the buyer is interested, Illinois law allows brokers to
    • A. 

      Conspicuously display notice of Illinois dual agency rules in the broker's office

    • B. 

      Designate certain licensees within the firm as the legal represenatives of the principal

    • C. 

      Represent the buyer and seller with oral notice to both

    • D. 

      Exempt in-house sales from dual agency requirements

  • 24. 
    Samantha, an Illinois resident, hired her next door neighbor, Darren, a licensed real estate broker, to sell her house. Samantha never told Darren that her backyard would severly flood after every significant rainfall. Darren found a buyer and the home was sold. No one told the buyer about the flooding problem. The buyer files a suit based on failure to disclose the flooding problem. Darren may be found liable for failure to disclose the flooding because
    • A. 

      Illinois law provides for absolute liability rearding the broker's failure to discover and disclose the problem

    • B. 

      Darren probably knew that Samantha's property had a flooding problem

    • C. 

      Darren's professional liability insurance covers this type of claim

    • D. 

      Samantha should have disclosed the problem so liability is automatically attributable to the broker

  • 25. 
    Which type of listing agreement offers the least protection to the listing agent?
    • A. 

      An exclusive agency listing

    • B. 

      An exclusive right to sell listing

    • C. 

      An open listing

    • D. 

      An MLS listing

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