Ownership + Title
25%of exam
Agency + Contracts
25%of exam
Finance + Valuation
20%of exam
Note vs MortgageLoan TypesPoints3 ApproachesCap RateFair Housing
Illinois State Law
29%of exam
License Act 2000IDFPRDesignated AgencyEscrowTransfer TaxHuman Rights Act
Real Estate Math
10%of exam
CommissionProrationAreaLTVMill RateTransfer Tax Calc
Quick Facts
- Exam
- IL Broker License
- Questions
- 140 (100+40)
- Pass
- 75% each portion
- Time
- 3.5 hours
- Pre-license
- 75 hours
- Vendor
- PSI
- Exam fee
- $58
- Regulator
- IDFPR
Bundle of Rights
DEEP C = ownership rights
DisposeEncumberEnjoyPossessControl
Joint Tenancy vs Common
Joint Tenancy
- Survivorship
- Four unities
- Equal shares
Tenancy Common
- No survivorship
- Unequal shares
- Passes by will
Survivorship vs inheritance
Which Form of Ownership?
- One sole owner→Severalty
- Want survivorship→Joint tenancy(Four unities)
- Unequal shares→Tenancy common(By will)
- Married couple home→Tenancy entirety(If state allows)
- Owns for lifetime→Life estate
- Privacy, IL transfer→Land trust(Beneficiary controls)
- Most complete rights→Fee simple
- Tenant possession only→Leasehold
Estates + Ownership
- Fee simple
- Complete ownership, indefinite
- Defeasible fee
- Lost if condition violated
- Life estate
- Lasts a lifetime
- Remainderman
- Gets title after death
- Reversion
- Returns to grantor
- Freehold
- Ownership estate
- Leasehold
- Tenant possession
Deed Covenants
Seisin, encumbrance, quiet enjoyment
Seisin: owns itAgainst encumbrancesQuiet enjoymentWarranty + further assurance
Actual vs Constructive Notice
Actual
- Genuine knowledge
- Person truly knows
- Direct awareness
Constructive
- Law presumes
- Recorded/possessed
- Recording gives priority
Known vs presumed
Co-ownership
- Joint tenancy
- Survivorship, four unities
- Tenancy common
- No survivorship, unequal
- Four unities
- Time title interest possession
- Severalty
- Sole ownership
- IL land trust
- Trustee title, beneficiary controls
- Trade fixture
- Tenant's removable business item
Easements + Encroach
- Appurtenant
- Runs with land
- In gross
- Benefits person/utility
- Dominant tenement
- Benefited parcel
- Servient tenement
- Burdened parcel
- Encroachment
- Improvement intrudes neighbor
- Prescriptive
- Easement by long use
Title + Transfer
- Warranty deed
- Full title covenants
- Quitclaim deed
- No warranties, clears clouds
- Actual notice
- Real knowledge held
- Constructive notice
- Recording presumes knowledge
- Title insurance
- Covers undiscovered defects
- Abstract
- Recorded-document history
- Specific lien
- One identified property
- General lien
- All debtor property
Land Use + Fair Housing
- Police power
- Zoning, no payment
- Eminent domain
- Take, just compensation
- Variance
- Deviation for hardship
- Nonconforming
- Grandfathered prior use
- CC&Rs
- Private deed restrictions
- Protected classes
- Race color religion etc.
- Steering
- Directing by class
- Blockbusting
- Inducing panic selling
- Redlining
- Denying loans area
Fiduciary Duties
OLD CAR = agent owes client
ObedienceLoyaltyDisclosureConfidentialityAccountingReasonable care
General vs Special Agency
General
- Ongoing relationship
- Broad authority
- Property manager
Special
- Single task
- Limited authority
- Listing broker
Scope of authority
Which Agency / Disclosure?
- Represent one client→Designated agent(IL default)
- Single listing task→Special agency
- Manage many duties→General agency
- Not represented party→Customer(Honesty only)
- Both same licensee→Dual agency(Written consent)
- Two firm agents→Designated agency(No company dual)
- First confidential info→Disclose agency(In writing)
- Before offer drafted→Confirm representation
Agency Types
- Special agent
- Single limited task
- General agent
- Ongoing broad authority
- Client
- Represented, owed fiduciary
- Customer
- Dealt with, not represented
- Dual agent
- Both parties, written consent
- Designated agent
- IL default model
Bilateral vs Unilateral
Bilateral
- Promise for promise
- Both obligated
- Purchase agreement
Unilateral
- Promise for act
- One bound
- Option / open listing
Both vs one bound
Fiduciary Duties
- Obedience
- Follow lawful instructions
- Loyalty
- Client interest first
- Disclosure
- Reveal material facts
- Confidentiality
- Protect client secrets
- Accounting
- Safeguard, report funds
- Reasonable care
- Skill and diligence
Void vs Voidable
Void
- Never a contract
- Illegal purpose
- No effect
Voidable
- Valid until canceled
- Minor / duress
- One may rescind
None vs cancelable
Contracts + Listings
- Bilateral
- Promise for promise
- Unilateral
- Promise for act
- Void
- No contract existed
- Voidable
- One party may cancel
- Unenforceable
- Valid, court won't enforce
- Statute of frauds
- RE deals in writing
- Earnest money
- Good-faith deposit, escrow
- Contingency
- Condition to proceed
- Net listing
- Legal in Illinois
Value Approaches
Sales, Cost, Income
Sales: homesCost: unique/newIncome: investment
Which Value Approach?
- Typical home→Sales comparison
- New or unique→Cost approach
- Investment income→Income approach
- Broker price opinion→CMA / BPO
- Federal-related loan→Licensed appraiser
Financing
- Promissory note
- The debt promise
- Mortgage
- Pledges property collateral
- Deed of trust
- Trustee-held security
- Conventional
- Not government-backed, PMI
- FHA
- Insured, low down
- VA
- Guaranteed for veterans
- PITI
- Principal interest tax insurance
- Discount point
- 1% buys down rate
- RESPA
- Bans kickbacks, discloses costs
Valuation + Appraisal
- Sales comparison
- Compare similar sales
- Cost approach
- Land plus replacement
- Income approach
- Capitalize net income
- CMA
- Broker pricing opinion
- BPO
- Broker price opinion
- Appraisal
- Licensed certified value
- Cap rate
- NOI over value
- GRM
- Price over gross rent
Broker vs Managing Broker
Broker
- Entry-level
- Must be sponsored
- Like salesperson
Managing Broker
- Supervises office
- Holds escrow
- Separate exam
Practice vs supervise
IL License Act + IDFPR
- License Act 2000
- 225 ILCS 454
- Broker
- Entry-level licensee
- Managing Broker
- Supervises office, escrow
- Leasing Agent
- Residential rentals only
- Sponsorship card
- Required to practice
- Designated agency
- IL default representation
- Escrow account
- Separate client funds
- Commingling
- Prohibited fund mixing
- CE 12 hours
- Per two-year cycle
- Post-license
- 45-hour first renewal
IL Contracts + Disclosure
- Attorney review
- 5-day custom period
- Agency disclosure
- Written, before offer
- Dual agency consent
- Before and confirmed
- PCDS
- Property condition disclosure
- Judicial foreclosure
- Court suit required
- Redemption period
- Cure or pay debt
Math + Formulas
- Commission
- Price times rate
- Proration
- Split costs at closing
- 1 acre
- 43,560 square feet
- Area
- Length times width
- LTV
- Loan over value
- 1 mill
- $1 per $1,000
- State transfer
- $0.50 per $500
- County transfer
- $0.25 per $500
Common Traps
IL license name
Entry = Broker ≠ Supervisory = Managing Broker
Note vs mortgage
Note is debt ≠ Mortgage secures it
CMA vs appraisal
CMA is opinion ≠ Appraisal is certified
Void vs voidable
Void never existed ≠ Voidable is cancelable
Police power vs taking
Police power free ≠ Eminent domain pays
Net listings
Banned many states ≠ Legal in Illinois
Last Minute
- 1.IL entry license = Broker
- 2.Managing Broker supervises office and escrow
- 3.Pass = 75% on each portion separately
- 4.140 scored: 100 national + 40 Illinois
- 5.OLD CAR = agent fiduciary duties
- 6.Joint tenancy = survivorship; common = inherit
- 7.Note = debt; mortgage = collateral
- 8.Constructive notice comes from recording deed
- 9.IL transfer tax = $0.50/$500
- 10.Designated agency is the Illinois default
- 11.Attorney review = 5-day Illinois custom
- 12.Commingling client escrow funds is prohibited
Buy on Amazon
Pre-licensing on Colibri
Study guide on MometrixSame family resources
Explore More Real Estate Salesperson
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
More From This Family
Videos and articles for deeper review.
VideoFREE Illinois Real Estate Exam Guide 2026: 140 QsThis examVideoFREE Illinois Real Estate Exam Guide 2026: Why the 43% Pass Rate & How to Beat ItThis examVideo100+ FREE Real Estate Exam Questions 2026 + AnswersVideo11 States With Full RE License Reciprocity (2026)Article100+ FREE Real Estate Exam Questions 2026 + Answers10 min readArticleFree Real Estate Exam Podcast (2026): Salesperson & Broker License Audio Study Guide8 min readArticleFailed the Real Estate Exam? Your Complete Retake & Recovery Plan (2026)16 min readArticleHow Much Do Real Estate Agents Make in 2026? Salary by State & Experience14 min read