Illinois Has One of the Lowest Real Estate Exam Pass Rates in America
Let that number sink in: only 43% of test-takers pass the national portion of the Illinois Real Estate Broker Exam. The state portion fares slightly better at 56%, but those are still among the worst pass rates in the country.
If you're preparing for the Illinois real estate exam in 2026, you need more than a generic study guide. You need a strategy specifically designed to overcome the unique challenges that cause more than half of all candidates to fail.
This guide breaks down exactly why Illinois is so hard, which sections carry the most weight, and how to build a study plan that puts you in the passing minority.
Illinois Real Estate Exam: Quick Overview
| Component | Details |
|---|---|
| Total Questions | 140 multiple-choice (100 national + 40 state) |
| Time Limit | 3.5 hours (210 minutes) |
| Passing Score | 70% on each section separately |
| National Portion | 100 questions, need 70 correct |
| State Portion | 40 questions, need 28 correct |
| Exam Fee | $58 per attempt |
| Testing Vendor | PSI Services |
| Pre-licensing Required | 90 hours total |
| Average National Pass Rate | 43% |
| Average State Pass Rate | 56% |
You must pass both sections independently. Passing one but failing the other means you retake only the failed section, but there is no partial credit across sections.
Why Is the Illinois Real Estate Exam So Hard?
Illinois consistently ranks among the most difficult states for real estate licensing. Here is exactly why:
1. More Questions Than Most States
Most states have 100 to 120 total exam questions. Illinois throws 140 questions at you across two separately-scored sections. That is more content to master, more opportunities to make mistakes, and more mental stamina required over 3.5 hours.
| State | Total Questions | Time Limit |
|---|---|---|
| Illinois | 140 | 3.5 hours |
| California | 150 | 3.25 hours |
| Texas | 125 | varies |
| Florida | 100 | 3.5 hours |
| New York | 75 | 1.5 hours |
| Ohio | 120 | 3.5 hours |
2. Unique Broker/Salesperson Terminology
In most states, the entry-level license is called a "salesperson" or "sales associate" license. Illinois calls everyone a "broker." To supervise other brokers, you need a "managing broker" license. This terminology difference causes confusion on both the national and state portions, because national questions use standard "salesperson" language while Illinois state questions use "broker" terminology.
3. Heavy Math Component
The Illinois exam is notorious for its calculation-heavy questions. You need to be comfortable with:
- LTV (Loan-to-Value) ratios — calculating maximum loan amounts
- Equity calculations — current value minus outstanding mortgage balance
- Down payment computations — purchase price breakdowns
- Prorating — property taxes, rent, insurance, and HOA dues at closing
- Commission splits — broker/agent/company share calculations
- Transfer tax calculations — Illinois state and county transfer taxes
- Net proceeds — seller net sheets with all closing costs
Many candidates underestimate the math. It is not conceptually difficult, but under time pressure with 140 questions, calculation errors add up fast.
4. State-Specific Laws That Differ From National Standards
Illinois has several laws that directly contradict what you learn in the national portion:
- Attorney review period — 5 business days (most states do not have this)
- Designated agency as the default (not universal agency)
- Illinois Human Rights Act — broader protections than federal Fair Housing Act
- Transfer tax structure — both state and county transfer taxes
- Licensing structure — broker/managing broker instead of salesperson/broker
The 7 Exam Sections: Ranked by Weight and Difficulty
Understanding where the points are is critical. Here are the seven major content areas ranked by their approximate weight on the exam:
| Rank | Section | Approx. Weight | Difficulty |
|---|---|---|---|
| 1 | Contracts | ~18-20% | High |
| 2 | Practice of Real Estate | ~16-18% | High |
| 3 | Financing | ~14-16% | Medium-High |
| 4 | Property Ownership | ~12-14% | Medium |
| 5 | Transfer of Title | ~10-12% | Medium |
| 6 | Property Valuation | ~10-12% | Medium |
| 7 | Real Estate Calculations | ~8-10% | High |
The "Big 4" Categories
The top four categories — Contracts, Practice of Real Estate, Financing, and Property Ownership — make up over 60% of the entire exam. If you master these four areas, you have a strong mathematical chance of passing even if you struggle with the remaining sections.
Focus your study time accordingly. Do not give equal time to every section.
Section-by-Section Study Strategy
Section 1: Contracts (Heaviest Weight — ~18-20%)
This is the most heavily weighted section and the one where most candidates lose points.
Key topics to master:
- Types of contracts — bilateral vs. unilateral, express vs. implied, executed vs. executory
- Contract formation — offer, acceptance, consideration, legal capacity, legal purpose
- Contract performance — specific performance, liquidated damages, rescission
- Illinois attorney review — the 5-business-day period is heavily tested
- Contingencies — financing, inspection, appraisal contingencies
- Earnest money — handling, disbursement, and escrow requirements
Study tip: Create flashcards for every contract type and know the difference between void, voidable, and unenforceable contracts cold.
Section 2: Practice of Real Estate (~16-18%)
Key topics to master:
- Agency relationships — designated agency (Illinois default), dual agency, buyer agency, seller agency
- Fiduciary duties — OLD CAR (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care)
- Disclosure requirements — Illinois Residential Real Property Disclosure Act (23-item report)
- Brokerage agreements — listing agreements, buyer representation agreements
- Anti-trust issues — price fixing, market allocation, boycotts, tie-in arrangements
Study tip: Focus on Illinois-specific agency rules. The state portion tests designated agency extensively.
Section 3: Financing (~14-16%)
Key topics to master:
- Mortgage types — conventional, FHA, VA, USDA
- Lending regulations — RESPA, TILA, ECOA, Dodd-Frank
- Loan calculations — LTV ratios, debt-to-income ratios, points
- Mortgage instruments — promissory note vs. mortgage/deed of trust
- Secondary mortgage market — Fannie Mae, Freddie Mac, Ginnie Mae
Study tip: Memorize the key ratios: conventional LTV (80%), FHA down payment (3.5%), VA (0% down for eligible veterans).
Section 4: Property Ownership (~12-14%)
Key topics to master:
- Types of ownership — fee simple, life estate, joint tenancy, tenancy in common, tenancy by the entirety
- Property restrictions — deed restrictions, zoning, building codes, environmental regulations
- Zoning classifications — residential, commercial, industrial, agricultural
- Encumbrances — easements, liens, encroachments
- Government powers — PETE (Police power, Eminent domain, Taxation, Escheat)
Study tip: Know the four unities of joint tenancy (TTIP: Time, Title, Interest, Possession) — this is a favorite exam question.
Section 5: Transfer of Title (~10-12%)
Key topics to master:
- Types of deeds — general warranty, special warranty, quitclaim, bargain and sale
- Recording process — constructive notice vs. actual notice
- Title insurance — owner's policy vs. lender's policy
- Involuntary transfers — adverse possession, eminent domain, intestate succession
- Closing procedures — settlement statements, prorations
Section 6: Property Valuation (~10-12%)
Key topics to master:
- Three appraisal approaches — sales comparison, cost approach, income capitalization
- CMA (Comparative Market Analysis) — how agents price properties
- Value vs. price vs. cost — understanding the distinctions
- Depreciation — physical deterioration, functional obsolescence, external obsolescence
Section 7: Real Estate Calculations (~8-10%)
Though lower in weight, this section has the highest difficulty per question. Every math question you get right is a question most other test-takers get wrong.
Key formulas to memorize:
| Calculation | Formula |
|---|---|
| LTV Ratio | Loan Amount / Property Value |
| Equity | Current Value - Mortgage Balance |
| Commission | Sale Price x Commission Rate |
| Transfer Tax | Sale Price x Tax Rate |
| Prorating | Annual Amount / 365 (or 360) x Days |
| Cap Rate | NOI / Purchase Price |
| GRM | Sale Price / Gross Annual Rent |
| Net Operating Income | Gross Income - Operating Expenses |
Study tip: Practice at least 50 math problems before exam day. Speed and accuracy under pressure are what separate passers from failers in this section.
Illinois-Specific Rules You Must Know
These are the state-specific details that trip up candidates who only study national material:
Licensing Structure
- Broker license — entry-level license (equivalent to "salesperson" in other states)
- Managing broker license — required to supervise other brokers (2 years experience + 45 additional education hours)
- Leasing agent license — limited license for residential leasing only
Pre-Licensing Education: 90 Hours Total
- 75-hour Broker Pre-License Course — covers national and state topics
- 15-hour Applied Real Estate Principles Course — practical application
- Both courses must be completed at an IDFPR-approved school
Post-License and Continuing Education
- 20-hour post-license course — must be completed within the first renewal period
- Annual 8-hour continuing education — required every year
- June 10 deadline — CE must be completed by June 10 of the renewal year (commonly tested!)
The Three-Strikes Rule
If you fail the exam three times, you must retake the entire pre-licensing education (all 90 hours) before you can test again. At $58 per attempt plus the cost of re-education, this is an expensive mistake.
| Attempt | Cost | Cumulative Total |
|---|---|---|
| 1st attempt | $58 | $58 |
| 2nd attempt | $58 | $116 |
| 3rd attempt | $58 | $174 |
| After 3 failures | $500-$1,500+ (re-education) | $674-$1,674+ |
Do not treat the exam casually. Prepare properly the first time.
The Proven Study Strategy: How to Join the 43% Who Pass
Use Dedicated Exam Prep Tools
Candidates who use structured exam prep tools pass at significantly higher rates. Studies show that students using dedicated prep platforms like CompuCram achieve an 86.5% pass rate — nearly double the state average.
Optimized 6-Week Study Schedule
| Week | Focus Area | Daily Hours | Strategy |
|---|---|---|---|
| Week 1 | Contracts + Practice of RE | 2-3 hours | Read material, create flashcards |
| Week 2 | Financing + Property Ownership | 2-3 hours | Focus on LTV, agency, ownership types |
| Week 3 | Transfer of Title + Valuation | 2 hours | Deeds, appraisal methods |
| Week 4 | Real Estate Calculations | 2-3 hours | Math drills, formula memorization |
| Week 5 | Illinois-Specific Laws | 2-3 hours | State portion focus, attorney review, IHRA |
| Week 6 | Full Practice Exams | 3-4 hours | Timed 140-question simulations |
Total study time: 90-120 hours (in addition to your 90-hour pre-licensing education)
The 70/30 Rule
Spend 70% of your study time on the Big 4 categories (Contracts, Practice of RE, Financing, Property Ownership) and 30% on everything else. This mirrors the exam's weight distribution and maximizes your score per hour studied.
5 Common Mistakes Illinois Exam Takers Make
1. Studying Only National Material
The state portion has a higher pass rate (56% vs. 43%), but many candidates still fail it because they treat it as an afterthought. Illinois-specific laws are unique and require dedicated study.
2. Ignoring the Math
Real estate calculations appear on both the national and state portions. Candidates who skip math practice leave easy points on the table.
3. Confusing Illinois Terminology
Using "salesperson" when the answer is "broker," or confusing managing broker requirements with standard broker requirements, costs valuable points on the state portion.
4. Poor Time Management on Exam Day
With 140 questions in 210 minutes, you have exactly 1.5 minutes per question. Spending too long on difficult questions early means rushing through easier questions later.
Pro tip: Answer every question on the first pass. Flag difficult ones and come back if time permits.
5. Not Taking Enough Practice Exams
Reading is not the same as testing. You need to practice under timed, exam-like conditions to build the stamina and pattern recognition required for 140 questions.
What Happens on Exam Day
- Arrive 30 minutes early at your PSI testing center
- Bring two forms of ID (one government-issued with photo)
- No personal items in the testing room (phone, notes, calculator provided by PSI)
- On-screen calculator is provided — no personal calculators allowed
- Results are immediate — you will know pass/fail before leaving the center
After Passing
- Submit your license application to IDFPR
- Pay the application fee ($150)
- Find a sponsoring broker
- Complete your background check
- Complete 20-hour post-license education within your first renewal period
After Failing
- You can retake immediately (schedule another appointment)
- You only retake the section(s) you failed
- $58 per retake attempt
- Remember the three-strikes rule — three failures means starting over
Your Path to Passing the Illinois Real Estate Exam in 2026
The 43% pass rate is intimidating, but it reflects the many candidates who walk in underprepared. With a focused study plan, dedicated practice with the right tools, and attention to Illinois-specific material, you can absolutely beat those odds.
Here is your action plan:
- Complete your 90 hours of pre-licensing education
- Follow the 6-week study schedule above
- Use the 70/30 rule to allocate study time
- Practice at least 500 questions before exam day
- Take 3-5 full timed practice exams in the final week
- Review Illinois-specific rules the night before
Our free study materials include hundreds of practice questions, detailed explanations, Illinois-specific content, and AI-powered study assistance to help you at every stuck moment. Do not pay for expensive prep courses when everything you need is available completely free.
You have the data. You have the strategy. Now go pass that exam.