Skip to content

Free Illinois broker exam practice

Illinois real estate state practice test

Take 40 questions in 90 minutes. Then see exactly what you missed, why each answer works, and which Illinois rule to study next. Three complete forms. All answers free. No signup.

Last updated: September 7, 2026 · Content cutoff: September 6, 2026

Start a free state testRead the answer keys

Choose your free 40-question test

Each form has 40 different questions and the same four-area allocation. Topics overlap so you can practice a rule in more than one situation.

Start with core rules and everyday transaction decisions. Each form saves separately when browser storage is available. Switching forms does not pause a running timer. Use one tab per form.

Illinois Form A

Find out which Illinois rules need another look

40scored questions

90 mintimed session

Freefull answer review

  • Choose one answer per question. Skip, return, or flag a question if you are unsure.
  • Answers stay hidden in the test until you submit or time runs out. Unanswered questions count as incorrect.
  • The timer keeps running if you switch tabs or leave. Refreshing restores the original deadline when storage is available.

Take it without notes for a timed practice attempt. Prefer to read first? Use the complete answer key at your own pace. No email, account, payment, or download is required.

What is on the Illinois state real estate exam?

The Illinois broker state portion has 40 scored questions, a 90-minute limit, and a 75% passing requirement. Its four topic areas appear below. Each form on this page follows those same counts.

State topic
Licensing Requirements
Questions per form
4
Exam weight
10%
State topic
Illinois Real Estate License Act
Questions per form
16
Exam weight
40%
State topic
Additional Illinois Laws and Regulations
Questions per form
10
Exam weight
25%
State topic
Disclosures
Questions per form
10
Exam weight
25%

Source: PSI Illinois Candidate Information Booklet, June 24, 2026, printed page 11 and broker state outline on pages 14 through 16. PSI may include unscored experimental questions that still use exam time. These practice forms contain 40 scored items each.

The License Act accounts for the largest share, but disclosures and additional Illinois laws together make up half of the state portion. Expect to apply a rule to a situation: who must act, what must be in writing, and when it must happen.

These forms sample topics within each area. They do not cover every syllabus point, and matching the topic counts does not establish equivalent exam difficulty. Use the Illinois state study guide and full outline to check the topics you have not studied yet.

Make the score useful

  1. Mark uncertainty while you answer. Flag anything you guessed, even if you narrow it down to two choices. A correct guess deserves review too.
  2. Find the fact that decides the answer. Is the client a seller or a buyer? Was the disclosure sent or actually received? Those details change the result.
  3. Repair one gap before trying another form. Read the explanation, open the cited rule, and explain it in your own words. Then apply it to a different situation.

A score of 30/40 reaches the official state percentage on this practice set. It does not establish readiness. Look for consistent performance on unfamiliar questions, enough time to review your work, and an ability to explain why the alternatives are wrong.

Ninety minutes gives an average of 2 minutes 15 seconds per question. That is a pacing reference, not a requirement to spend that long on each one. Move past a difficult question and return with the time you saved elsewhere.

Want a larger question bank for your next session?

Try the study app with up to 20 starter questions. If it suits the way you study, the optional paid unlock adds the full 1,339-question bank and 7 study modes. Your free test and every explanation here stay available either way.

Open the web app Get the mobile app

Available on mobile and in a browser. This website's answers and scores are not imported into the app.

All 120 questions, answers, and explanations

Taking a timed attempt? Finish before opening its key. Studying without a timer? Choose any form below. Every question has the correct answer, an explanation for each choice, a source, and a link to the topic guide.

Numbers match the interactive form. The keys work without JavaScript. Topic labels appear here for review and are omitted from the timed questions.

Illinois Form A: 40 questions with full explanations
1. A brokerage hires an unlicensed assistant. Which assignment stays within the administrative work the Illinois rule permits?

Unlicensed assistants · Illinois Real Estate License Act

  1. Explain the inspection contingency to a buyer.
  2. Assemble the documents needed for a closing.
  3. Host a public open house while the broker is nearby.
  4. Show an apartment without discussing the rental price.

Correct answer: B. Assemble the documents needed for a closing.

Rule 1450.740 permits assembling closing documents under licensee supervision. It does not permit the assistant to interpret a contract, show property, or host a public open house.

Why the other choices miss the mark

  • A. Explain the inspection contingency to a buyer.

    Explaining or interpreting a contract is expressly outside the assistant role.

  • C. Host a public open house while the broker is nearby.

    The rule prohibits an unlicensed assistant from hosting a public open house.

  • D. Show an apartment without discussing the rental price.

    Showing property is prohibited even when the assistant avoids discussing price.

Check the rule: 68 Ill. Adm. Code 1450.740: unlicensed assistants.

Study this topicPSI broker outline II.G

2. A description identifies Lot 7, Block 2, of a named subdivision and gives its recording reference. What should a broker recognize?

Legal-description references · Additional Illinois Laws and Regulations

  1. It is a metes-and-bounds description because it names a block.
  2. It uses a recorded plat to identify the parcel.
  3. It identifies only the postal delivery location.
  4. It replaces the need to identify which subdivision plat is meant.

Correct answer: B. It uses a recorded plat to identify the parcel.

A lot-and-block description identifies land by reference to a recorded subdivision plat. The plat reference matters because it connects the lot and block to the recorded boundaries. A mailing address serves a different purpose.

Why the other choices miss the mark

  • A. It is a metes-and-bounds description because it names a block.

    Metes and bounds follows boundary calls such as bearings and distances; this description instead refers to a plat.

  • C. It identifies only the postal delivery location.

    Lot, block, subdivision, and recording information identify a parcel through land records.

  • D. It replaces the need to identify which subdivision plat is meant.

    Lot numbers can recur; the specific subdivision and recording reference make the description meaningful.

Check the rule: 68 Ill. Adm. Code 1270.56: land survey standards.

Study this topicPSI broker outline III.E

3. A listing agent is helping an unrepresented buyer communicate an offer. Before the buyer reveals a confidential maximum price, what written notice is needed?

No-agency notice · Disclosures

  1. Notice only after the seller accepts the offer.
  2. A disclosure of the agent's commission, with no agency explanation.
  3. Notice that the listing agent is not acting as the buyer's agent.
  4. No notice, because answering the buyer's questions creates buyer agency automatically.

Correct answer: C. Notice that the listing agent is not acting as the buyer's agent.

Section 15-35(c) requires written no-agency disclosure in time to prevent the customer from revealing confidential information, and never later than preparation of an offer. Waiting for an offer signature can already be too late.

Why the other choices miss the mark

  • A. Notice only after the seller accepts the offer.

    Acceptance is later than the statutory outside deadline.

  • B. A disclosure of the agent's commission, with no agency explanation.

    Compensation information does not tell the buyer whether the agent represents the buyer.

  • D. No notice, because answering the buyer's questions creates buyer agency automatically.

    Assistance to a customer does not automatically establish the claimed buyer representation.

Check the rule: 225 ILCS 454/15-35: agency disclosure.

Study this topicPSI broker outline IV.A

4. An Illinois ad shows a broker name in 28-point type and the sponsoring broker name in 10-point type. There is no qualifying sponsor logo, and the sponsor name also occupies less space. What needs to change?

Sponsor prominence in advertisements · Illinois Real Estate License Act

  1. Add the individual broker license number below the ad.
  2. Put a larger sponsor name on a linked profile page.
  3. Keep the layout if the sponsoring broker approves it.
  4. Give the sponsor name at least equal font size or display area under the rule.

Correct answer: D. Give the sponsor name at least equal font size or display area under the rule.

The sponsor must be identified. Rule 1450.715 allows the size requirement to be met through equal-or-larger font, equal-or-larger occupied area, or the qualifying sponsor-logo alternative. This ad meets none of those alternatives.

Why the other choices miss the mark

  • A. Add the individual broker license number below the ad.

    A license number does not replace sponsor identification and prominence.

  • B. Put a larger sponsor name on a linked profile page.

    A linked page does not repair the stated prominence defect in this ad.

  • C. Keep the layout if the sponsoring broker approves it.

    Sponsor approval does not waive the advertising rule.

Check the rule: 68 Ill. Adm. Code 1450.715: advertising; 225 ILCS 454/10-30: advertising.

Study this topicPSI broker outline II.B

5. Maya has completed approved broker coursework and holds a high school equivalency credential. She turns 18 next month. When can she satisfy the standard Illinois broker age requirement?

Minimum age · Licensing Requirements

  1. Now, because she finished the coursework.
  2. Now, if a sponsoring broker signs her application.
  3. When she turns 18.
  4. When she turns 21.

Correct answer: C. When she turns 18.

The standard broker route requires age 18 or older. Completing the coursework and holding an equivalency credential meet different requirements; neither changes the minimum age.

Why the other choices miss the mark

  • A. Now, because she finished the coursework.

    Course completion does not replace the separate age requirement.

  • B. Now, if a sponsoring broker signs her application.

    A sponsor cannot waive the statutory minimum age.

  • D. When she turns 21.

    Age 21 is not the standard Illinois broker minimum; it is 18.

Check the rule: 225 ILCS 454/5-27: broker qualifications.

Study this topicPSI broker outline I.D

6. An owner divides a tract into two parcels, one containing three acres. Assume no statutory exemption applies. What does the Illinois Plat Act generally require?

Plat Act trigger · Additional Illinois Laws and Regulations

  1. No plat unless the owner creates at least five parcels.
  2. No plat because the owner retains one of the parcels.
  3. A broker-prepared sketch in place of a surveyor's plat.
  4. A survey and subdivision plat prepared by an Illinois registered land surveyor.

Correct answer: D. A survey and subdivision plat prepared by an Illinois registered land surveyor.

Section 1(a) applies when land is divided into two or more parts and any part is under five acres, unless an exemption applies. The question rules out those exemptions; do not assume that every two-parcel division is exempt.

Why the other choices miss the mark

  • A. No plat unless the owner creates at least five parcels.

    The general trigger is two or more parts, not five parcels.

  • B. No plat because the owner retains one of the parcels.

    Retaining a parcel does not remove the stated subdivision trigger.

  • C. A broker-prepared sketch in place of a surveyor's plat.

    A broker's sketch is not the survey and plat required by the Act.

Check the rule: 765 ILCS 205/1: subdivisions and exemptions.

Study this topicPSI broker outline III.E

7. A group of sponsored brokers wants to advertise as Oak Street Realty. Which revision addresses the Illinois rule on misleading team names?

Team names · Illinois Real Estate License Act

  1. Oak Street Realty Team.
  2. Oak Street Realty Group.
  3. Oak Street Realty Associates.
  4. Oak Street Realty, Licensed Brokers.

Correct answer: A. Oak Street Realty Team.

The rule treats realty and several similar terms as inherently misleading unless followed by the word team. Adding Team addresses this naming issue; the ad must still satisfy sponsor-identification and prominence requirements.

Why the other choices miss the mark

  • B. Oak Street Realty Group.

    Group is not the required word team after realty.

  • C. Oak Street Realty Associates.

    Associates is itself one of the listed terms; this does not supply the required team wording.

  • D. Oak Street Realty, Licensed Brokers.

    Describing the members as licensed does not cure the team-name issue.

Check the rule: 68 Ill. Adm. Code 1450.715: advertising.

Study this topicPSI broker outline II.H

8. Both clients gave advance informed written consent to dual agency. Before signing the purchase contract, what additional step does Section 15-45 require?

Dual-agency confirmation · Disclosures

  1. Written confirmation from both clients of the prior dual-agency consent.
  2. No further step because advance consent completes every requirement.
  3. Only the buyer confirms because the buyer submits the offer.
  4. Confirmation can wait until the settlement statement is signed.

Correct answer: A. Written confirmation from both clients of the prior dual-agency consent.

The statute requires confirmation of the earlier consent before the parties sign the contract. If included in the contract, the confirmation must be signed and initialed as the statute directs. Advance consent and transaction-stage confirmation serve different purposes.

Why the other choices miss the mark

  • B. No further step because advance consent completes every requirement.

    The statute separately requires contract-stage confirmation.

  • C. Only the buyer confirms because the buyer submits the offer.

    Both clients must confirm; submitting the offer does not change that.

  • D. Confirmation can wait until the settlement statement is signed.

    The required timing is before the contract, not at settlement.

Check the rule: 225 ILCS 454/15-45: dual agency.

Study this topicPSI broker outline IV.A

9. An Illinois property owner receives a tax bill payable in 2026 for the 2025 assessment year. Which phrase describes this timing?

Property taxes in arrears · Additional Illinois Laws and Regulations

  1. Taxes are paid in arrears.
  2. The taxes are delinquent merely because the bill names 2025.
  3. The owner has prepaid the 2027 assessment.
  4. The bill includes two years of taxes automatically.

Correct answer: A. Taxes are paid in arrears.

Illinois property taxes are generally paid in the year after the assessment year. Arrears describes that timing. It does not, by itself, mean this owner is late or that a penalty has been imposed.

Why the other choices miss the mark

  • B. The taxes are delinquent merely because the bill names 2025.

    A prior assessment year is normal; delinquency depends on missing the payment deadline.

  • C. The owner has prepaid the 2027 assessment.

    The stated bill concerns the 2025 assessment, not a future year.

  • D. The bill includes two years of taxes automatically.

    Payment in a later calendar year does not mean the bill automatically combines two tax years.

Check the rule: Illinois Department of Revenue: The Illinois Property Tax System, January 2026 (pp. 6, 18, 22).

Study this topicPSI broker outline III.F

10. A broker begins licensed activities intended to help a buyer purchase an Illinois home before the written buyer agreement is signed. Under Rule 1450.770(h), when must the agreement be entered?

Buyer agreement timing · Illinois Real Estate License Act

  1. Only when the buyer decides to submit an offer.
  2. Before closing, provided no commission has been paid.
  3. As soon as reasonably practical after those activities.
  4. Within 30 calendar days after the first showing.

Correct answer: C. As soon as reasonably practical after those activities.

The rule permits the buyer agreement before the activities or as soon as reasonably practical afterward. That wording does not permit routinely waiting for an accepted offer or closing. The seller agreement has a different outside deadline.

Why the other choices miss the mark

  • A. Only when the buyer decides to submit an offer.

    Offer preparation is not the timing standard in subsection (h).

  • B. Before closing, provided no commission has been paid.

    The agreement requirement is tied to licensed activities, not commission payment.

  • D. Within 30 calendar days after the first showing.

    The rule provides no fixed 30-day allowance.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

11. One designated agent is preparing contemporaneous offers by two clients for the same property. What must the agent do under Illinois law?

Competing buyer clients · Disclosures

  1. Provide written disclosure to both clients and refer any client who requests it to another designated agent.
  2. Each buyer's maximum budget to the other buyer.
  3. Only the identity of the client paying the larger commission.
  4. Nothing unless the seller accepts one of the offers.

Correct answer: A. Provide written disclosure to both clients and refer any client who requests it to another designated agent.

Rule 1450.830 and Section 15-15(b) require written disclosure to all affected clients and referral to another designated agent when a client requests it. They do not authorize revealing one client's confidential offer terms to the other.

Why the other choices miss the mark

  • B. Each buyer's maximum budget to the other buyer.

    Client confidences remain protected; the rule does not authorize sharing them.

  • C. Only the identity of the client paying the larger commission.

    Commission size does not determine which clients receive the required notice.

  • D. Nothing unless the seller accepts one of the offers.

    The issue arises while contemporaneous offers are being prepared, before acceptance.

Check the rule: 68 Ill. Adm. Code 1450.830: contemporaneous offers; 225 ILCS 454/15-15: duties to a client.

Study this topicPSI broker outline IV.A

12. A seller asks a broker to publish a listing tonight and sign the brokerage agreement tomorrow. Under the rule effective July 13, 2026, what should the broker do?

Seller agreement timing · Illinois Real Estate License Act

  1. Enter the written seller agreement before marketing or listing the property.
  2. Publish now and sign as soon as reasonably practical afterward.
  3. Publish now if the seller gives permission by telephone.
  4. Wait to sign until the first buyer requests a showing.

Correct answer: A. Enter the written seller agreement before marketing or listing the property.

Rule 1450.770(g) requires the seller or owner agreement before the sponsoring broker markets or lists the property. The buyer-side reasonably-practical timing language does not extend this seller deadline.

Why the other choices miss the mark

  • B. Publish now and sign as soon as reasonably practical afterward.

    That wording belongs to the buyer or tenant provision, not the seller or owner deadline.

  • C. Publish now if the seller gives permission by telephone.

    Oral permission does not replace the required written agreement before marketing.

  • D. Wait to sign until the first buyer requests a showing.

    The deadline arrives before marketing, even if no showing has been requested.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

13. An applicant is using the standard Illinois broker education route. Which pair of approved courses completes the required 75 hours?

Prelicense education · Licensing Requirements

  1. 60 hours of topics and 15 hours of interactive applied principles.
  2. 60 hours of topics and 15 hours of ordinary continuing education.
  3. 45 hours of topics and 30 hours of post-license education.
  4. 75 hours of topics with no interactive applied-principles course.

Correct answer: A. 60 hours of topics and 15 hours of interactive applied principles.

The standard route combines 60 hours of Broker Pre-License Topics with 15 hours of interactive Applied Real Estate Principles. Use an approved provider; unrelated continuing education does not substitute for either course.

Why the other choices miss the mark

  • B. 60 hours of topics and 15 hours of ordinary continuing education.

    The final 15 hours must be the approved interactive applied-principles component.

  • C. 45 hours of topics and 30 hours of post-license education.

    Post-license education serves a later licensing stage and does not complete the prelicense requirement.

  • D. 75 hours of topics with no interactive applied-principles course.

    A total of 75 hours alone is insufficient when the required 15-hour component is missing.

Check the rule: PSI Illinois Candidate Information Booklet, June 24, 2026; 225 ILCS 454/5-27: broker qualifications.

Study this topicPSI broker outline I.D

14. An Illinois licensee is a member of the LLC that will buy a property. Before initiating the transaction, what must the licensee disclose to the other parties?

Indirect ownership interest · Disclosures

  1. Only the LLC name, with no mention of the licensee.
  2. Nothing if the licensee owns less than half of the LLC.
  3. The licensee's status and indirect interest in writing.
  4. The licensee's interest after the deed has been recorded.

Correct answer: C. The licensee's status and indirect interest in writing.

The Act requires written licensee-status disclosure for a direct or indirect interest. Rule 1450.765 addresses that disclosure before initiation of the transaction. An LLC does not conceal or eliminate the licensee's interest for this purpose.

Why the other choices miss the mark

  • A. Only the LLC name, with no mention of the licensee.

    Naming the buyer entity does not disclose the member's licensee status and indirect interest.

  • B. Nothing if the licensee owns less than half of the LLC.

    The disclosure rule is not a majority-ownership test.

  • D. The licensee's interest after the deed has been recorded.

    Post-recording disclosure comes too late for the required transaction-stage notice.

Check the rule: 68 Ill. Adm. Code 1450.765: disclosure of licensee status; 225 ILCS 454/10-27: licensee status.

Study this topicPSI broker outline IV.B

15. A nonexempt Illinois transfer has taxable value of $200,001. Calculate only the state transfer tax at $0.50 per $500 or fraction of $500.

State transfer-tax calculation · Additional Illinois Laws and Regulations

  1. $200.00.
  2. $300.75.
  3. $200.50.
  4. $400.50.

Correct answer: C. $200.50.

$200,001 divided by $500 is 400.002 units. Round the number of units up to 401, then multiply by $0.50: $200.50. County and municipal charges are outside this question.

Why the other choices miss the mark

  • A. $200.00.

    This drops the fractional $500 unit instead of rounding the unit count up.

  • B. $300.75.

    This applies $0.75 per unit, mixing in a county amount the question excludes.

  • D. $400.50.

    This doubles the state rate rather than applying $0.50 per $500 unit.

Check the rule: 35 ILCS 200/31-10: state transfer tax.

Study this topicPSI broker outline III.C

16. A seller wants an exclusive agreement but asks the broker to waive the duty to receive and present offers. What is the correct response?

Minimum services · Illinois Real Estate License Act

  1. The waiver is effective if the commission is reduced.
  2. Only buyer agreements carry minimum service duties.
  3. That duty is part of the minimum services required for an exclusive agreement.
  4. The waiver works if the seller initials it separately.

Correct answer: C. That duty is part of the minimum services required for an exclusive agreement.

Section 15-75 requires minimum services under an exclusive agreement, including receiving and presenting offers. Rule 1450.770(b)(2) treats an agreement that omits or waives those services as nonexclusive.

Why the other choices miss the mark

  • A. The waiver is effective if the commission is reduced.

    Negotiating compensation does not eliminate the services needed for an exclusive agreement.

  • B. Only buyer agreements carry minimum service duties.

    The statute applies to exclusive brokerage agreements, including seller agreements.

  • D. The waiver works if the seller initials it separately.

    Separate initials do not preserve exclusivity while waiving statutory minimum services.

Check the rule: 225 ILCS 454/15-75: minimum services; 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

17. For a covered residential sale, a seller emails the disclosure report before signing. The buyer does not receive it until after becoming bound by the contract. Has the before-contract delivery requirement been satisfied?

Effective delivery of the seller report · Disclosures

  1. Yes, because pressing Send is always effective delivery.
  2. No. Delivery is effective on receipt, and the report was received too late.
  3. Yes, because email is an approved delivery method.
  4. Yes, if the seller did not intend to delay the report.

Correct answer: B. No. Delivery is effective on receipt, and the report was received too late.

Section 20 requires delivery before signing the contract. Section 50 makes delivery effective on the buyer's receipt. Sending a message is not enough when the buyer receives the report only after the contract is signed.

Why the other choices miss the mark

  • A. Yes, because pressing Send is always effective delivery.

    Section 50 uses receipt, not merely transmission.

  • C. Yes, because email is an approved delivery method.

    An allowed method must still meet the effective-delivery and timing requirements.

  • D. Yes, if the seller did not intend to delay the report.

    Good intentions do not change when the buyer actually received it.

Check the rule: 765 ILCS 77/20: disclosure before a contract; 765 ILCS 77/50: effective delivery.

Study this topicPSI broker outline IV.D

18. An Illinois rental ad says No housing vouchers. The property is covered by the Illinois Human Rights Act. What is the problem?

Source-of-income discrimination · Additional Illinois Laws and Regulations

  1. There is no issue if the same wording appears in every ad.
  2. There is no issue because federal law sets the only protected classes.
  3. It states an exclusion based on a protected source of income.
  4. The only issue is whether the ad gives a rent amount.

Correct answer: C. It states an exclusion based on a protected source of income.

Illinois fair housing protections include source of income. A blanket refusal of applicants using housing assistance can violate that protection. Housing providers may use lawful screening criteria, but cannot simply exclude this protected income source.

Why the other choices miss the mark

  • A. There is no issue if the same wording appears in every ad.

    Applying a discriminatory exclusion consistently does not make it lawful.

  • B. There is no issue because federal law sets the only protected classes.

    Illinois adds protections that must also be followed.

  • D. The only issue is whether the ad gives a rent amount.

    Adding the rent would not cure the source-of-income exclusion.

Check the rule: Illinois Department of Human Rights: housing rights.

Study this topicPSI broker outline III.G

19. A sponsoring broker designates Lee to represent a seller and Ana to represent a buyer in the same sale. Neither agent represents the other client. Does sharing a sponsor alone make each agent a dual agent?

Designated agents · Illinois Real Estate License Act

  1. Yes. Every licensee at the firm automatically represents both clients.
  2. No. Specific designation can keep their agency relationships separate.
  3. Yes, unless both clients pay exactly equal commissions.
  4. No, because neither agent owes confidentiality within the same firm.

Correct answer: B. No. Specific designation can keep their agency relationships separate.

Section 15-50 allows specified affiliated licensees to act as agents to the exclusion of other affiliated licensees. Common sponsorship alone does not make Lee and Ana individual dual agents. Client confidences must still be protected.

Why the other choices miss the mark

  • A. Yes. Every licensee at the firm automatically represents both clients.

    That overlooks the statute permitting specific designation to the exclusion of other affiliated licensees.

  • C. Yes, unless both clients pay exactly equal commissions.

    Compensation amounts do not determine whether the agents represent both parties.

  • D. No, because neither agent owes confidentiality within the same firm.

    Separate designation does not remove duties to protect client confidences.

Check the rule: 225 ILCS 454/15-50: brokerage agreements.

Study this topicPSI broker outline II.A

20. One broker is asked to represent both buyer and seller. The seller consents in writing; the buyer has only agreed orally. May the broker begin acting as a dual agent?

Dual-agency consent · Illinois Real Estate License Act

  1. Yes, because one written consent is enough for the transaction.
  2. Yes, if the buyer signs a confirmation at closing.
  3. No, because Illinois prohibits all consensual dual agency.
  4. No. All clients must give informed written consent before the dual representation.

Correct answer: D. No. All clients must give informed written consent before the dual representation.

Section 15-45 permits dual agency only with informed written consent of all clients. One written consent and one oral consent do not satisfy that condition. Later contract-stage confirmation is an additional step.

Why the other choices miss the mark

  • A. Yes, because one written consent is enough for the transaction.

    Each client, not merely one side, must give informed written consent.

  • B. Yes, if the buyer signs a confirmation at closing.

    Consent is needed before acting as a dual agent; closing is too late.

  • C. No, because Illinois prohibits all consensual dual agency.

    Illinois permits dual agency subject to its consent, confirmation, and other restrictions.

Check the rule: 225 ILCS 454/15-45: dual agency.

Study this topicPSI broker outline II.A

21. A tenant requests an assistance animal. Neither the disability nor the disability-related need is apparent or known. What may the housing provider generally request under Illinois law?

Assistance-animal documentation · Additional Illinois Laws and Regulations

  1. Reliable documentation supporting the disability-related need.
  2. The tenant's complete medical history.
  3. A paid online registration certificate as the only acceptable proof.
  4. Proof that the animal completed commercial obedience training.

Correct answer: A. Reliable documentation supporting the disability-related need.

Section 10 permits reliable documentation when the disability or need is not apparent or known. The provider may not demand a specific diagnosis. Documentation must be assessed under the Act, including its therapeutic-relationship requirements.

Why the other choices miss the mark

  • B. The tenant's complete medical history.

    The Act does not permit requiring a specific diagnosis; a complete medical history goes beyond the permitted need documentation.

  • C. A paid online registration certificate as the only acceptable proof.

    The law does not make a purchased registry certificate the exclusive or sufficient form of verification.

  • D. Proof that the animal completed commercial obedience training.

    The request concerns disability-related assistance, not a universal commercial-training requirement.

Check the rule: 310 ILCS 120/10: assistance animals.

Study this topicPSI broker outline III.H

22. After delivering a residential disclosure report but before closing, a seller discovers a material foundation defect that makes the report inaccurate. What should the seller do?

Updating a disclosure report · Disclosures

  1. Wait for the buyer's inspector to discover it.
  2. Mention it verbally at the final walkthrough only.
  3. Leave the report unchanged because it was accurate when first signed.
  4. Give the buyer a written supplemental disclosure.

Correct answer: D. Give the buyer a written supplemental disclosure.

Section 30 requires a written supplement when the seller becomes aware before closing that the prior report is inaccurate, incomplete, or incorrect. The original delivery does not end the obligation to correct it.

Why the other choices miss the mark

  • A. Wait for the buyer's inspector to discover it.

    The seller's new knowledge triggers a supplemental disclosure duty independently of an inspection.

  • B. Mention it verbally at the final walkthrough only.

    The statute requires a written supplement.

  • C. Leave the report unchanged because it was accurate when first signed.

    A report accurate when delivered still needs supplementation after relevant new knowledge before closing.

Check the rule: 765 ILCS 77/30: supplemental disclosure.

Study this topicPSI broker outline IV.D

23. A listing expires. A prospective buyer asks the former listing broker for the seller's confidential minimum acceptable price. The seller has not authorized disclosure. What should the broker do?

Confidentiality after termination · Illinois Real Estate License Act

  1. Disclose it because the agency relationship has ended.
  2. Disclose it after waiting 30 days.
  3. Disclose it only to another licensed broker.
  4. Keep the price confidential despite the expired listing.

Correct answer: D. Keep the price confidential despite the expired listing.

Section 15-30 preserves confidentiality after the brokerage agreement ends. The broker also must account for transaction money and property. Expiration does not make the former client's confidential negotiating information public.

Why the other choices miss the mark

  • A. Disclose it because the agency relationship has ended.

    Confidentiality is one of the duties that survives termination or expiration.

  • B. Disclose it after waiting 30 days.

    The statute does not create a 30-day expiry for client confidences.

  • C. Disclose it only to another licensed broker.

    The recipient holding a license does not authorize release of the former client's confidence.

Check the rule: 225 ILCS 454/15-30: duties after termination.

Study this topicPSI broker outline II.A

24. A broker leaves her sponsoring brokerage on Monday. A new firm plans to register her sponsorship on Thursday. A buyer asks for a showing on Tuesday. What should she do?

End of sponsorship · Licensing Requirements

  1. Show the property because the buyer was already her client.
  2. Show the property but let another broker write the offer.
  3. Use a 30-day transition period to finish pending work.
  4. Wait until valid new sponsorship is registered before doing licensed work.

Correct answer: D. Wait until valid new sponsorship is registered before doing licensed work.

Termination of sponsorship makes the license inactive immediately. An expected new affiliation does not authorize a showing during the gap. The buyer needs an appropriately active licensee for that showing.

Why the other choices miss the mark

  • A. Show the property because the buyer was already her client.

    An existing client relationship does not preserve authority after sponsorship ends.

  • B. Show the property but let another broker write the offer.

    Showing property is itself licensed activity; avoiding the paperwork does not solve the issue.

  • C. Use a 30-day transition period to finish pending work.

    Section 5-40 does not grant this proposed grace period.

Check the rule: 225 ILCS 454/5-40: sponsorship.

Study this topicPSI broker outline I.D

25. Property is held in a conventional Illinois land trust. Who holds legal and equitable title to the real estate under that arrangement?

Illinois land trusts · Additional Illinois Laws and Regulations

  1. The beneficiary holds legal title while the trustee holds only equitable title.
  2. The beneficiary holds both titles because the beneficiary directs the trustee.
  3. The sponsoring broker holds title until the trust terminates.
  4. The trustee.

Correct answer: D. The trustee.

In the Illinois land-trust arrangement described by the statute, the trustee holds legal and equitable title. The beneficiary's interest is treated as personal property, even though the beneficiary may retain important powers under the trust agreement.

Why the other choices miss the mark

  • A. The beneficiary holds legal title while the trustee holds only equitable title.

    That reverses the statutory Illinois land-trust arrangement.

  • B. The beneficiary holds both titles because the beneficiary directs the trustee.

    A power of direction is different from holding legal and equitable title.

  • C. The sponsoring broker holds title until the trust terminates.

    Brokerage involvement does not make the broker the title holder.

Check the rule: 765 ILCS 405/1: land trusts.

Study this topicPSI broker outline III.A

26. A sponsored broker opens a personal bank account labeled Client Escrow and deposits buyer earnest money there. The money is never used personally. Is this permitted?

Who holds escrow · Illinois Real Estate License Act

  1. Yes, because the account name contains Escrow.
  2. No. A sponsored licensee may not maintain an individual escrow account.
  3. Yes, if every deposit belongs to a different transaction.
  4. Yes, if the broker sends monthly statements to the sponsor.

Correct answer: B. No. A sponsored licensee may not maintain an individual escrow account.

Rule 1450.750(j) prohibits sponsored licensees from maintaining their own escrow accounts. Keeping the money untouched does not cure the wrong account arrangement. The brokerage's compliant escrow procedures must be followed.

Why the other choices miss the mark

  • A. Yes, because the account name contains Escrow.

    An account label does not give a sponsored licensee authority to maintain it.

  • C. Yes, if every deposit belongs to a different transaction.

    The number or separation of transactions does not remove the prohibition.

  • D. Yes, if the broker sends monthly statements to the sponsor.

    Reporting to the sponsor does not make the individual account permissible.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

27. A covered Illinois home seller has a radon test report showing elevated levels. Before the buyer becomes obligated under the purchase contract, what should be provided?

Radon before purchase · Disclosures

  1. Only a promise that the buyer may test after closing.
  2. Nothing unless the buyer asks specifically about radon.
  3. The required radon information and disclosure, including the known report.
  4. Only the general seller report, without the radon materials.

Correct answer: C. The required radon information and disclosure, including the known report.

The Illinois Radon Awareness Act requires the prescribed radon information and disclosure before the buyer is obligated, including available records of elevated radon. It does not let a seller replace those disclosures with a verbal assurance.

Why the other choices miss the mark

  • A. Only a promise that the buyer may test after closing.

    A later testing opportunity does not replace pre-contract radon disclosures.

  • B. Nothing unless the buyer asks specifically about radon.

    The disclosure requirement is not triggered only by a buyer's question.

  • D. Only the general seller report, without the radon materials.

    The separate radon requirements are not satisfied merely by providing the general property report.

Check the rule: 420 ILCS 46/10: radon disclosure.

Study this topicPSI broker outline IV.E

28. Spouses buy an Illinois home for use as their homestead. The deed expressly creates tenancy by the entirety. Which fact is central to that form of ownership?

Tenancy by the entirety · Additional Illinois Laws and Regulations

  1. Any two business partners can create it for a warehouse.
  2. The qualifying spousal relationship, homestead use, and express creation of the estate.
  3. It arises automatically whenever two names appear on a deed.
  4. It gives each spouse a separately transferable half without the other's signature.

Correct answer: B. The qualifying spousal relationship, homestead use, and express creation of the estate.

Section 1c ties tenancy by the entirety to spouses in a marriage or civil union, homestead property, and the required instrument language. Two people buying together does not by itself create this estate.

Why the other choices miss the mark

  • A. Any two business partners can create it for a warehouse.

    The stated business-partner warehouse arrangement does not meet the spousal homestead conditions.

  • C. It arises automatically whenever two names appear on a deed.

    The statute requires the qualifying relationship, property use, and express creation.

  • D. It gives each spouse a separately transferable half without the other's signature.

    The statute requires both tenants to sign a deed, contract for deed, mortgage, or lease of the homestead.

Check the rule: 765 ILCS 1005/1c: tenancy by the entirety.

Study this topicPSI broker outline III.A

29. A sponsoring broker holds earnest money when a purchase contract is accepted on Monday. There is no holiday, and the contract specifies no different deposit date. What is the ordinary deadline for depositing the funds into escrow?

Earnest-money deposit timing · Illinois Real Estate License Act

  1. Monday of the following week.
  2. After the buyer finishes the inspection.
  3. Tuesday, the next business day after the transaction.
  4. At closing, if the broker keeps the check secure.

Correct answer: C. Tuesday, the next business day after the transaction.

Under Rule 1450.750, escrow money must ordinarily be deposited no later than the next business day following the transaction, unless the written transaction terms provide otherwise. Here acceptance on Monday makes Tuesday the deadline.

Why the other choices miss the mark

  • A. Monday of the following week.

    The ordinary deadline is the next business day, not seven days later.

  • B. After the buyer finishes the inspection.

    An inspection contingency does not itself postpone the escrow deposit deadline.

  • D. At closing, if the broker keeps the check secure.

    Holding the check safely does not substitute for timely deposit.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

30. A nonexempt 1965 home is being sold. The seller has no knowledge of lead-based paint and no reports. What happens to the federal disclosure requirements?

Lead disclosure without a known hazard · Disclosures

  1. All disclosure duties disappear because no hazard is known.
  2. The seller must test every painted surface before listing.
  3. The buyer receives the pamphlet only after taking title.
  4. The seller still provides the required lead disclosure package and states the lack of knowledge.

Correct answer: D. The seller still provides the required lead disclosure package and states the lack of knowledge.

For covered pre-1978 housing, lack of known lead does not waive the disclosure package. The buyer receives the approved pamphlet, required warning and acknowledgment, and the purchase inspection opportunity unless properly modified or waived in writing. The rule does not require the seller to test first.

Why the other choices miss the mark

  • A. All disclosure duties disappear because no hazard is known.

    The required package applies to covered housing even without known lead information.

  • B. The seller must test every painted surface before listing.

    The federal disclosure rule does not itself require a seller to test.

  • C. The buyer receives the pamphlet only after taking title.

    The required information is due before the buyer becomes obligated under the contract.

Check the rule: U.S. EPA: lead disclosures for sellers and lessors.

Study this topicPSI broker outline IV.E

31. A sale falls through. Both sides give the sponsoring broker conflicting written demands for the earnest money. No court order or agreed release resolves the dispute. What should the broker do?

Disputed earnest money · Illinois Real Estate License Act

  1. Continue holding the money while following the lawful dispute-resolution process.
  2. Pay the seller because the seller signed the listing agreement.
  3. Split the money equally between buyer and seller.
  4. Deduct the commission and return the remainder to the buyer.

Correct answer: A. Continue holding the money while following the lawful dispute-resolution process.

A broker cannot decide who deserves contested earnest money. Rule 1450.750(h) requires continued escrow pending an authorized disposition, such as the parties' written release or a civil action in which the money may be deposited with the court.

Why the other choices miss the mark

  • B. Pay the seller because the seller signed the listing agreement.

    Representation of the seller does not authorize deciding ownership of disputed escrow.

  • C. Split the money equally between buyer and seller.

    An even split still needs legal authority; it is not the broker's default remedy.

  • D. Deduct the commission and return the remainder to the buyer.

    A commission claim does not authorize taking disputed escrow or choosing its recipient.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

32. A broker seeks a lien for an unpaid fee on commercial real estate. Which fact is essential under the Commercial Real Estate Broker Lien Act?

Commercial broker lien foundation · Additional Illinois Laws and Regulations

  1. The broker made at least one telephone call about the property.
  2. The broker believes the services increased the property's value.
  3. The broker has an oral promise and records it as a deed.
  4. The fee is due under a qualifying signed written instrument.

Correct answer: D. The fee is due under a qualifying signed written instrument.

Section 10 requires an entitlement to a fee under a qualifying written instrument signed by the owner, buyer, tenant, or authorized agent as applicable. Recording and notice rules also matter. Performing helpful work alone does not create the lien.

Why the other choices miss the mark

  • A. The broker made at least one telephone call about the property.

    A call alone does not establish the signed written fee entitlement required by the Act.

  • B. The broker believes the services increased the property's value.

    Perceived added value does not replace the qualifying written instrument.

  • C. The broker has an oral promise and records it as a deed.

    Recording something does not cure the absence of the required written fee agreement.

Check the rule: 770 ILCS 15/10: commercial broker liens.

Study this topicPSI broker outline III.J

33. A broker candidate has passed both exam portions. According to the PSI candidate booklet, what deadline applies to submitting the license application and meeting the licensing requirements?

License application deadline · Licensing Requirements

  1. Within two years after the passing score.
  2. Within one year after passing the appropriate examination.
  3. Within 90 days after the passing score.
  4. By the next broker renewal date, regardless of when the exam was passed.

Correct answer: B. Within one year after passing the appropriate examination.

PSI states that a candidate must apply to IDFPR and meet the licensing requirements within one year after passing. The two-year education-validity period is a different clock.

Why the other choices miss the mark

  • A. Within two years after the passing score.

    The booklet gives two years for prelicense education validity, not this post-exam application deadline.

  • C. Within 90 days after the passing score.

    Ninety days is not the application window stated in the booklet.

  • D. By the next broker renewal date, regardless of when the exam was passed.

    The application deadline runs from passing the examination, not the renewal calendar.

Check the rule: PSI Illinois Candidate Information Booklet, June 24, 2026.

Study this topicPSI broker outline I.E

34. An owner received a mine subsidence insurance payment for the property now being sold. No disclosure waiver has been signed. Who must receive the statutory disclosure when the parties agree to the transfer?

Mine subsidence claim · Disclosures

  1. The transferee and lender.
  2. Only the county recorder.
  3. Only the seller's insurer.
  4. Only the buyer's broker, with no need to inform the buyer or lender.

Correct answer: A. The transferee and lender.

Section 3 requires disclosure to the transferee and lender of mine subsidence claims paid to the transferor. It is due when the transfer agreement is made and forms part of a written agreement. A waiver of disclosure or its timing must be written and signed by the transferee and lender; this question excludes a waiver.

Why the other choices miss the mark

  • B. Only the county recorder.

    Recording activity does not replace the required disclosure to the transferee and lender.

  • C. Only the seller's insurer.

    The insurer is not a substitute for the two recipients specified by the Act.

  • D. Only the buyer's broker, with no need to inform the buyer or lender.

    Telling a broker alone does not satisfy the stated recipients of this disclosure.

Check the rule: 765 ILCS 95/3: mine subsidence disclosure.

Study this topicPSI broker outline IV.E

35. A lender asks an Illinois broker for a BPO to serve as the primary market-value basis for originating a mortgage loan secured by the property. How should the broker handle that request?

BPO purpose restriction · Illinois Real Estate License Act

  1. Provide it if the lender accepts a not-an-appraisal disclaimer.
  2. Decline that proposed use of the BPO.
  3. Provide it if no separate fee is charged.
  4. Provide it only after calling it a comparative market analysis.

Correct answer: B. Decline that proposed use of the BPO.

Section 10-45 permits several BPO uses but excludes using one as the primary basis to determine market value for a financial institution's mortgage loan origination. A permitted pricing service does not become suitable for that excluded purpose by changing its label.

Why the other choices miss the mark

  • A. Provide it if the lender accepts a not-an-appraisal disclaimer.

    The disclaimer is required in a BPO, but it does not override the prohibited use.

  • C. Provide it if no separate fee is charged.

    The restriction concerns the intended mortgage-origination use, not whether the report is free.

  • D. Provide it only after calling it a comparative market analysis.

    The same purpose restriction applies to a CMA.

Check the rule: 225 ILCS 454/10-45: BPO and CMA requirements.

Study this topicPSI broker outline II.L

36. A covered Cook County residential tenancy ends. All prior tenants vacate, and a new tenant will take possession. No exception applies. By when must the landlord change or rekey the individual dwelling locks?

Lock changes at turnover · Additional Illinois Laws and Regulations

  1. Within 30 days after the new tenant moves in.
  2. On or before the day the new tenant takes possession.
  3. Only after the new tenant pays an extra rekeying fee.
  4. Only if the old tenant reported losing a key.

Correct answer: B. On or before the day the new tenant takes possession.

Section 15 applies in counties with a population over three million and contains exceptions. For the covered turnover in this question, the locks must be changed or rekeyed on or before possession day. Do not apply this provision automatically to every Illinois tenancy.

Why the other choices miss the mark

  • A. Within 30 days after the new tenant moves in.

    That permits possession before the statutory lock-change deadline is met.

  • C. Only after the new tenant pays an extra rekeying fee.

    The stated duty is tied to turnover and possession, not an extra-fee request.

  • D. Only if the old tenant reported losing a key.

    The covered turnover rule does not depend on a reported lost key.

Check the rule: 765 ILCS 705/15: changing dwelling locks.

Study this topicPSI broker outline III.I

37. A landlord knows a first-floor rental unit flooded twice in the last ten years. It is outside a mapped FEMA Special Flood Hazard Area. What must happen before the new lease is signed?

Lower-level rental flooding · Disclosures

  1. No disclosure is needed because the property is outside the mapped floodplain.
  2. Disclose the flooding history and frequency in writing under the lower-level rule.
  3. Disclose only if the flooding occurred in the last year.
  4. Disclose verbally after the tenant pays the security deposit.

Correct answer: B. Disclose the flooding history and frequency in writing under the lower-level rule.

Illinois defines a lower-level unit to include the first floor. The lower-level disclosure applies to the specified ten-year flood history even outside the mapped floodplain. The disclosure must also be included in the lease and signed by both parties.

Why the other choices miss the mark

  • A. No disclosure is needed because the property is outside the mapped floodplain.

    Mapped-zone status does not remove the lower-level flood-history requirement.

  • C. Disclose only if the flooding occurred in the last year.

    The lower-level provision uses ten years, not one.

  • D. Disclose verbally after the tenant pays the security deposit.

    The rule requires written disclosure before lease signing, with inclusion in the signed lease.

Check the rule: 765 ILCS 705/25: rental flood disclosure.

Study this topicPSI broker outline IV.E

38. A seller offers to pay a sponsored broker her transaction commission directly instead of paying her sponsoring broker. Which payment route follows the ordinary Illinois rule?

Payment through the sponsor · Illinois Real Estate License Act

  1. The sponsored broker receives licensed-service compensation through her sponsoring broker.
  2. The seller pays directly if the amount matches the agreement.
  3. The seller pays directly if the payment is called a bonus.
  4. The buyer and seller each pay half directly to the sponsored broker.

Correct answer: A. The sponsored broker receives licensed-service compensation through her sponsoring broker.

Section 10-5 requires sponsored licensees to receive compensation for licensed activities from their sponsoring broker, subject to statutory exceptions. A seller's preference for direct payment does not create an exception.

Why the other choices miss the mark

  • B. The seller pays directly if the amount matches the agreement.

    A correct amount does not cure an improper payment route.

  • C. The seller pays directly if the payment is called a bonus.

    Changing the name does not stop it being compensation for licensed services.

  • D. The buyer and seller each pay half directly to the sponsored broker.

    Splitting the source of payment does not satisfy the sponsor-payment rule.

Check the rule: 225 ILCS 454/10-5: payment of compensation.

Study this topicPSI broker outline II.E

39. IDFPR finds one violation of the Real Estate License Act. Under Section 20-20, what is the stated maximum disciplinary fine for each violation?

Disciplinary fine · Illinois Real Estate License Act

  1. $2,500 per violation.
  2. $10,000 per violation.
  3. $25,000 total for every violation in an entire case.
  4. $25,000 per violation.

Correct answer: D. $25,000 per violation.

Section 20-20 authorizes a fine up to $25,000 for each violation, along with other possible discipline. This is a maximum, not a claim that every violation receives that amount.

Why the other choices miss the mark

  • A. $2,500 per violation.

    This understates the maximum stated in Section 20-20.

  • B. $10,000 per violation.

    The current Section 20-20 ceiling is $25,000, not $10,000.

  • C. $25,000 total for every violation in an entire case.

    The statute states the maximum for each violation, not a single combined ceiling for the case.

Check the rule: 225 ILCS 454/20-20: grounds for discipline.

Study this topicPSI broker outline II.K

40. After both parties sign a purchase contract, a broker notices that the closing date is wrong. What must happen before the broker processes a corrected version?

Changes to signed documents · Illinois Real Estate License Act

  1. The broker corrects it and initials the change alone.
  2. Only the seller initials it because the seller delivers title.
  3. Obtain written authority and have all signatories sign or initial the change.
  4. The broker emails the correction and treats silence as consent.

Correct answer: C. Obtain written authority and have all signatories sign or initial the change.

Rule 1450.775(b) requires written consent or direction from all signatories for an alteration. Each change must be signed or initialed by all signatories when made. Calling the date a typo does not bypass those safeguards.

Why the other choices miss the mark

  • A. The broker corrects it and initials the change alone.

    The broker's initials do not replace authorization and approval by all signatories.

  • B. Only the seller initials it because the seller delivers title.

    All signatories must approve the alteration, not just the seller.

  • D. The broker emails the correction and treats silence as consent.

    Silence does not provide the required written authorization and signatures or initials.

Check the rule: 68 Ill. Adm. Code 1450.775: written agreements.

Study this topicPSI broker outline II.J

Illinois Form B: 40 questions with full explanations
1. A broker wants to advertise a property exclusively listed by a different sponsoring broker. What must be addressed under Rule 1450.715(a)(1)?

Advertising another firm's listing · Illinois Real Estate License Act

  1. Getting a prospective buyer's permission is enough.
  2. No permission is needed if the broker rewrites the property description.
  3. Only the price must match; the listing broker can always be omitted.
  4. Obtain authorization from that sponsoring broker and identify the listing broker as required.

Correct answer: D. Obtain authorization from that sponsoring broker and identify the listing broker as required.

The rule requires authorization from the sponsoring broker with the exclusive agreement and identification of the listing broker. Access to a listing or its photos is not, by itself, the authorization described in this rule.

Why the other choices miss the mark

  • A. Getting a prospective buyer's permission is enough.

    The relevant authorization comes from the sponsoring broker holding the exclusive agreement.

  • B. No permission is needed if the broker rewrites the property description.

    Changing the wording does not remove the authorization and identification requirements.

  • C. Only the price must match; the listing broker can always be omitted.

    Accurate price information does not replace the separate identification requirement.

Check the rule: 68 Ill. Adm. Code 1450.715: advertising.

Study this topicPSI broker outline II.B

2. A covered apartment ad is being revised. Which phrase describes the property rather than a preference based on a protected characteristic?

Fair housing advertising · Additional Illinois Laws and Regulations

  1. Adults only; families with children need not apply.
  2. Two bedrooms, step-free entrance, near the train station.
  3. Applicants of our religion preferred.
  4. Perfect for tenants without children; others discouraged.

Correct answer: B. Two bedrooms, step-free entrance, near the train station.

Describe the home's features and location without excluding people based on protected characteristics. The other options signal a preference involving familial status or religion. The same fair housing principles apply online and in print.

Why the other choices miss the mark

  • A. Adults only; families with children need not apply.

    For the covered ordinary rental in the question, excluding families with children raises familial-status discrimination.

  • C. Applicants of our religion preferred.

    Stating a religious preference in housing advertising is prohibited in this covered situation.

  • D. Perfect for tenants without children; others discouraged.

    Softening the wording does not remove the stated preference against families with children.

Check the rule: 775 ILCS 5/3-102: fair housing practices.

Study this topicPSI broker outline III.G

3. A broker begins representing a new buyer as the designated agent. When is the written notice of that relationship and the designated agent's name due?

Designated-agency notice timing · Disclosures

  1. Only when the first purchase contract is accepted.
  2. Only when the buyer pays a retainer.
  3. At the first renewal of the broker's license.
  4. No later than the beginning of work as the designated agent for the consumer.

Correct answer: D. No later than the beginning of work as the designated agent for the consumer.

Section 15-35(a) requires the notice no later than beginning work as a designated agent. It may be part of the brokerage agreement or a separate retained document, with a copy to the consumer or client.

Why the other choices miss the mark

  • A. Only when the first purchase contract is accepted.

    That is later than the beginning-of-representation deadline.

  • B. Only when the buyer pays a retainer.

    Payment is not the trigger for this agency disclosure.

  • C. At the first renewal of the broker's license.

    A license-renewal date has no connection to notice for this new client relationship.

Check the rule: 225 ILCS 454/15-35: agency disclosure.

Study this topicPSI broker outline IV.A

4. A sale closes, but the broker still controls an online ad presenting the property as available. What is the appropriate action?

Outdated online listings · Illinois Real Estate License Act

  1. Leave it until the next license renewal.
  2. Keep it indefinitely if it still generates inquiries.
  3. Leave it unless the buyer sends a formal complaint.
  4. Take reasonable steps to remove or correct the outdated advertising.

Correct answer: D. Take reasonable steps to remove or correct the outdated advertising.

Rule 1450.715 requires reasonable efforts to remove advertising after closing or listing termination, whichever occurs first. Control over the ad and ease of removal matter. An ad the broker controls should not continue to suggest that a sold property is available.

Why the other choices miss the mark

  • A. Leave it until the next license renewal.

    License renewal is not the rule's deadline for addressing stale advertising.

  • B. Keep it indefinitely if it still generates inquiries.

    Lead generation does not justify misleading availability information.

  • C. Leave it unless the buyer sends a formal complaint.

    The broker's duty does not depend on a complaint from the buyer.

Check the rule: 68 Ill. Adm. Code 1450.715: advertising.

Study this topicPSI broker outline II.B

5. An unlicensed consultant offers to negotiate a commercial lease for someone else in exchange for a rent discount on the consultant's own office. The proposal is rejected. Which fact creates the licensing concern?

Offering licensed services · Licensing Requirements

  1. Only accepting cash would create the concern.
  2. Only residential transactions require licensed negotiation.
  3. Offering negotiation services for another for valuable consideration.
  4. No concern exists until a lease is signed.

Correct answer: C. Offering negotiation services for another for valuable consideration.

The broker definition reaches offering or attempting covered acts for another in return for compensation or valuable consideration. A rent discount can be consideration. Neither a completed negotiation nor a cash payment is needed for this concern.

Why the other choices miss the mark

  • A. Only accepting cash would create the concern.

    Valuable consideration is broader than cash; a rent discount can qualify.

  • B. Only residential transactions require licensed negotiation.

    The broker definition includes covered commercial leasing activities.

  • D. No concern exists until a lease is signed.

    An offer or attempt to perform the covered service can fall within the definition.

Check the rule: 225 ILCS 454/1-10: definitions.

Study this topicPSI broker outline I.A

6. A tenant qualifies for a disability-related assistance animal in covered housing. The landlord normally charges a pet fee. How should the assistance-animal request be handled?

Assistance-animal fees · Additional Illinois Laws and Regulations

  1. Charge the pet fee because it applies equally to every animal.
  2. Waive the pet fee only if the tenant reveals a specific diagnosis.
  3. Waive both the pet fee and every charge for damage the animal ever causes.
  4. Do not impose the pet fee for the assistance animal; actual animal damage can still be charged as allowed.

Correct answer: D. Do not impose the pet fee for the assistance animal; actual animal damage can still be charged as allowed.

The Act bars a pet-related fee or deposit as a condition of an assistance-animal accommodation. It does not excuse the tenant from permitted charges for actual damage caused by the animal. Distinguish an upfront pet fee from damage liability.

Why the other choices miss the mark

  • A. Charge the pet fee because it applies equally to every animal.

    An assistance animal is not treated as an ordinary pet for this accommodation fee.

  • B. Waive the pet fee only if the tenant reveals a specific diagnosis.

    The statute does not permit conditioning the accommodation on disclosure of a specific diagnosis.

  • C. Waive both the pet fee and every charge for damage the animal ever causes.

    The fee restriction does not remove permitted responsibility for actual damage.

Check the rule: 310 ILCS 120/10: assistance animals.

Study this topicPSI broker outline III.H

7. An inactive Illinois broker advertises a home owned solely by that broker, using the owner-sale provision in Section 10-30(c)(2). What must the ad or sign disclose?

Owner advertising by an inactive broker · Illinois Real Estate License Act

  1. Only For Sale by Owner, without licensee ownership wording.
  2. That the property is broker-owned or agent-owned.
  3. The name of a former sponsor even though that firm is not involved.
  4. Nothing about licensee ownership until closing.

Correct answer: B. That the property is broker-owned or agent-owned.

The owner-sale provision requires broker-owned or agent-owned wording in the advertising or sign. It also bars using the name of a sponsoring broker that is not involved. Inactive status does not remove this advertising disclosure.

Why the other choices miss the mark

  • A. Only For Sale by Owner, without licensee ownership wording.

    The owner-sale provision specifically requires broker-owned or agent-owned disclosure.

  • C. The name of a former sponsor even though that firm is not involved.

    The provision prohibits using an uninvolved sponsoring broker's name.

  • D. Nothing about licensee ownership until closing.

    The question concerns an advertising duty, which arises before closing.

Check the rule: 225 ILCS 454/10-30: advertising.

Study this topicPSI broker outline II.B

8. At a showing, an unrepresented buyer starts to tell the seller's broker the most the buyer would pay. No offer is being prepared yet. Should the broker wait until offer preparation to give the written no-agency notice?

No-agency notice before confidences · Disclosures

  1. No. Give it in time to prevent disclosure of the customer's confidential information.
  2. Yes, because no agency notice can be given before an offer.
  3. Yes, because showings are always confidential on both sides.
  4. No written notice is needed if the broker wears a name badge.

Correct answer: A. No. Give it in time to prevent disclosure of the customer's confidential information.

The no-agency rule has both a protective timing requirement and an outside deadline. Preparation of an offer is the latest allowed point, not permission to accept customer confidences before then without the notice.

Why the other choices miss the mark

  • B. Yes, because no agency notice can be given before an offer.

    The rule requires earlier notice when needed to prevent the customer from sharing confidential information.

  • C. Yes, because showings are always confidential on both sides.

    An unrepresented customer should not assume the seller's broker owes buyer-client loyalty.

  • D. No written notice is needed if the broker wears a name badge.

    A name badge is not the required written no-agency disclosure.

Check the rule: 225 ILCS 454/15-35: agency disclosure.

Study this topicPSI broker outline IV.A

9. A homeowner successfully obtains a lower assessed value. Why should a broker avoid promising that the next tax bill will fall by exactly the same percentage?

Assessment versus tax bill · Additional Illinois Laws and Regulations

  1. Assessed value is never used to calculate property taxes.
  2. The bill also depends on rates, exemptions, and other applicable tax factors.
  3. Every Illinois property has the same fixed tax rate forever.
  4. A successful assessment appeal automatically cancels all property taxes.

Correct answer: B. The bill also depends on rates, exemptions, and other applicable tax factors.

An assessment is one input into the tax calculation. Taxing-district levies, applicable rates, equalization, and exemptions can also affect the final bill. A lower assessment alone does not establish an identical percentage reduction in the bill.

Why the other choices miss the mark

  • A. Assessed value is never used to calculate property taxes.

    Assessment is relevant, but it is not the only input.

  • C. Every Illinois property has the same fixed tax rate forever.

    Rates and taxing-district circumstances vary; this claim cannot support a promise.

  • D. A successful assessment appeal automatically cancels all property taxes.

    A reduced assessment is not an exemption from all tax liability.

Check the rule: Illinois Department of Revenue: The Illinois Property Tax System, January 2026 (pp. 6, 18, 22).

Study this topicPSI broker outline III.F

10. A team wants the name Lakeside Property Partners, without the word Team. The sponsor approves it. What issue remains under the Illinois team-name rule?

Team-name approval · Illinois Real Estate License Act

  1. Sponsor approval removes every team-name restriction.
  2. Using Partners automatically satisfies the team wording.
  3. Property is a listed term that must be followed by team.
  4. The restriction applies only to teams with unlicensed members.

Correct answer: C. Property is a listed term that must be followed by team.

The rule lists property among terms considered inherently misleading unless followed by team. Sponsor approval does not override that requirement. The whole advertisement must also identify the sponsoring brokerage appropriately.

Why the other choices miss the mark

  • A. Sponsor approval removes every team-name restriction.

    The sponsor must follow the rule and cannot waive it.

  • B. Using Partners automatically satisfies the team wording.

    Partners does not supply the required word team after the listed term.

  • D. The restriction applies only to teams with unlicensed members.

    The naming restriction is not limited to teams that include unlicensed people.

Check the rule: 68 Ill. Adm. Code 1450.715: advertising.

Study this topicPSI broker outline II.H

11. A seller funds compensation paid to the buyer's brokerage. Does that payment alone establish that the buyer's designated agent represents the seller?

Who pays versus who is represented · Disclosures

  1. Yes. Every broker must represent whoever supplies the money.
  2. No. Compensation alone does not determine the agency relationship.
  3. Yes, unless the buyer reimburses the seller after closing.
  4. No, because receiving compensation removes all agency duties.

Correct answer: B. No. Compensation alone does not determine the agency relationship.

Section 15-40 separates compensation from agency. The payment source alone neither creates nor proves the claimed seller representation. Look to the actual brokerage relationship and required disclosures.

Why the other choices miss the mark

  • A. Yes. Every broker must represent whoever supplies the money.

    That confuses compensation with the statutory basis of agency.

  • C. Yes, unless the buyer reimburses the seller after closing.

    Reimbursement is not what determines the designated-agency relationship.

  • D. No, because receiving compensation removes all agency duties.

    Payment does not erase the duties owed in an existing agency relationship.

Check the rule: 225 ILCS 454/15-40: compensation and agency.

Study this topicPSI broker outline IV.C

12. All required parties have authorized an escrow disbursement, but the sponsoring broker believes a commission is still owed. May the broker withhold that authorized disbursement to secure payment?

Client funds and commission disputes · Illinois Real Estate License Act

  1. No. A commission claim does not justify withholding authorized escrow funds.
  2. Yes, until the commission dispute is settled.
  3. Yes, but only up to the amount of the claimed commission.
  4. Yes, if the broker first moves the money to the operating account.

Correct answer: A. No. A commission claim does not justify withholding authorized escrow funds.

Rule 1450.750(g)(4) prohibits withholding an authorized escrow disbursement because of a licensee's commission or compensation claim. Pursuing compensation and handling entrusted funds are separate duties.

Why the other choices miss the mark

  • B. Yes, until the commission dispute is settled.

    That is the withholding the rule specifically prohibits.

  • C. Yes, but only up to the amount of the claimed commission.

    Limiting the amount does not make the unauthorized withholding lawful.

  • D. Yes, if the broker first moves the money to the operating account.

    Moving entrusted money does not create a right to retain it for a commission.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

13. A person holds only an Illinois residential leasing agent license. A broker offers a referral fee for sending over a home purchaser. May that licensee receive this purchase referral fee under Rule 1450.780?

Residential leasing license limits · Licensing Requirements

  1. No. That licensee's referral fees are limited to residential lease or rental transactions.
  2. Yes, because a home purchase involves residential property.
  3. Yes, if the fee is smaller than the leasing commission.
  4. Yes, provided the purchaser never becomes a client of the leasing agent.

Correct answer: A. No. That licensee's referral fees are limited to residential lease or rental transactions.

Rule 1450.780(b)(2) restricts referral fees for residential leasing agents to a lease or rental of residential real estate. A home purchase is outside that permission even if another broker performs the sale work.

Why the other choices miss the mark

  • B. Yes, because a home purchase involves residential property.

    Residential subject matter alone is insufficient; the referral must concern a residential lease or rental.

  • C. Yes, if the fee is smaller than the leasing commission.

    A reduced fee does not change the permitted transaction type.

  • D. Yes, provided the purchaser never becomes a client of the leasing agent.

    Avoiding direct representation does not expand the referral-fee permission.

Check the rule: 68 Ill. Adm. Code 1450.780: referral fees.

Study this topicPSI broker outline I.C

14. A properly consenting dual-agency buyer asks the broker to reveal the seller's confidential bottom-line price. What is the appropriate response?

Limits while acting as a dual agent · Disclosures

  1. Reveal it because both clients signed the same consent form.
  2. Reveal it only if the buyer raises the offered commission.
  3. Do not reveal that confidential price without the required permission.
  4. Reveal a price slightly above it while confirming that the seller will take less.

Correct answer: C. Do not reveal that confidential price without the required permission.

The statutory dual-agency disclosure explains limits on advice and disclosure. Consent to dual agency is not blanket permission to reveal the other client's confidential negotiating position.

Why the other choices miss the mark

  • A. Reveal it because both clients signed the same consent form.

    Dual-agency consent does not make each client's confidential information available to the other.

  • B. Reveal it only if the buyer raises the offered commission.

    A payment incentive cannot override confidentiality.

  • D. Reveal a price slightly above it while confirming that the seller will take less.

    Indirectly communicating the confidential bargaining position does not avoid the duty.

Check the rule: 225 ILCS 454/15-45: dual agency.

Study this topicPSI broker outline IV.A

15. A nonexempt property transfers for $300,000 subject to a $100,000 mortgage that remains outstanding. That remaining obligation is expressed in the deed. What is the Illinois state transfer tax?

Transfer-tax base with an existing mortgage · Additional Illinois Laws and Regulations

  1. $300.
  2. $100.
  3. $200.
  4. $400.

Correct answer: C. $200.

Section 31-10 permits the stated remaining-mortgage deduction when the transfer is subject to it and the amount is expressed as required. Taxable value is $200,000. Divide by $500 for 400 units, then multiply by $0.50: $200.

Why the other choices miss the mark

  • A. $300.

    This taxes the full $300,000 without the stated qualifying deduction.

  • B. $100.

    This taxes the mortgage balance itself instead of the $200,000 remaining taxable value.

  • D. $400.

    This applies $1 per $500 unit rather than the state rate of $0.50.

Check the rule: 35 ILCS 200/31-10: state transfer tax.

Study this topicPSI broker outline III.C

16. A licensee uses an outside service to collect and transmit earnest money. What happens to the licensee's obligations under the Illinois escrow rule?

Third-party earnest-money services · Illinois Real Estate License Act

  1. Every escrow duty transfers automatically to the software provider.
  2. The licensee remains responsible for compliance with the Act and rules.
  3. The duties apply only if the licensee personally handles a paper check.
  4. The duties disappear when the buyer chooses the service.

Correct answer: B. The licensee remains responsible for compliance with the Act and rules.

Rule 1450.750(n) expressly preserves the licensee's responsibility when a third-party service collects, manages, transmits, or disburses earnest money. Outsourcing the mechanics does not outsource the legal duty.

Why the other choices miss the mark

  • A. Every escrow duty transfers automatically to the software provider.

    The rule expressly keeps responsibility with the licensee despite the third-party service.

  • C. The duties apply only if the licensee personally handles a paper check.

    The rule also covers services handling electronic collections and transfers.

  • D. The duties disappear when the buyer chooses the service.

    The stated use of a third-party service does not eliminate the licensee's compliance obligations.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

17. An agent gives two buyer clients written disclosure that she is preparing their contemporaneous offers on the same home. One asks for referral to another designated agent. What must she do?

Referral choice for competing clients · Disclosures

  1. Refer that client to another designated agent.
  2. Tell the client the rule permits notice but never a referral request.
  3. Require the client to reveal the competing buyer's budget first.
  4. Wait until both offers are rejected before discussing the request.

Correct answer: A. Refer that client to another designated agent.

Rule 1450.830 and Section 15-15(b) require the referral when an affected client requests it. Giving written notice is one step; honoring the requested referral is another. Continue to protect each client's confidential information.

Why the other choices miss the mark

  • B. Tell the client the rule permits notice but never a referral request.

    The law requires referral to another designated agent when the client requests it.

  • C. Require the client to reveal the competing buyer's budget first.

    The other client's budget is confidential and is not a condition of the referral choice.

  • D. Wait until both offers are rejected before discussing the request.

    The rule addresses the competing-offer situation while it is occurring.

Check the rule: 68 Ill. Adm. Code 1450.830: contemporaneous offers; 225 ILCS 454/15-15: duties to a client.

Study this topicPSI broker outline IV.A

18. A condominium unit has a 2% ownership share in the common elements. Ordinary common expenses total $100,000. No special insurance or limited-common-element allocation applies. What is the unit's share under Section 9(a)?

Condominium common expenses · Additional Illinois Laws and Regulations

  1. $2,000.
  2. $200.
  3. An equal amount per occupant, regardless of the declaration.
  4. Nothing unless the owner used the common facilities that year.

Correct answer: A. $2,000.

Section 9(a) generally allocates common expenses in the same ratio as the ownership percentage in the common elements stated in the declaration. Here 2% of $100,000 is $2,000. The question excludes special allocations that could change the calculation.

Why the other choices miss the mark

  • B. $200.

    This uses 0.2% instead of the stated 2% ownership share.

  • C. An equal amount per occupant, regardless of the declaration.

    Occupant count is not the stated statutory basis for this ordinary allocation.

  • D. Nothing unless the owner used the common facilities that year.

    The duty is based on the ownership share, not voluntary use of common facilities.

Check the rule: 765 ILCS 605/9: condominium common expenses.

Study this topicPSI broker outline III.A

19. A brokerage wants to pay an unlicensed assistant $200 for every transaction that closes. The assistant performs only clerical work. What is the rule concern?

Assistant pay · Illinois Real Estate License Act

  1. Compensation for an unlicensed assistant cannot be transaction based.
  2. Clerical duties make any compensation method acceptable.
  3. The payment is allowed if it is called a clerical bonus.
  4. The rule applies only when the payment exceeds $500.

Correct answer: A. Compensation for an unlicensed assistant cannot be transaction based.

Rule 1450.740(a) prohibits transaction-based compensation for unlicensed assistants. Permitted clerical duties do not make a per-closing payment plan acceptable. The brokerage should use a lawful compensation arrangement for the administrative work.

Why the other choices miss the mark

  • B. Clerical duties make any compensation method acceptable.

    Permitted duties and permitted payment methods are separate conditions.

  • C. The payment is allowed if it is called a clerical bonus.

    The label does not change its dependence on a transaction closing.

  • D. The rule applies only when the payment exceeds $500.

    The rule does not provide the proposed dollar threshold.

Check the rule: 68 Ill. Adm. Code 1450.740: unlicensed assistants.

Study this topicPSI broker outline II.G

20. An Illinois broker prepares a written BPO for a permitted listing-pricing purpose. Which item belongs in the report under Section 10-45?

Written BPO contents · Illinois Real Estate License Act

  1. Only the suggested price and the property address.
  2. A guarantee that the property will sell at the stated price.
  3. A statement that every BPO is a certified appraisal.
  4. The intended purpose, methodology, assumptions, and the required not-an-appraisal statement.

Correct answer: D. The intended purpose, methodology, assumptions, and the required not-an-appraisal statement.

Section 10-45(b) requires these elements along with the property interest description, applicable interest disclosure, and the broker's identifying information and signature. A bare price is not a compliant substitute.

Why the other choices miss the mark

  • A. Only the suggested price and the property address.

    Those two items omit required report contents such as purpose and methodology.

  • B. A guarantee that the property will sell at the stated price.

    The statute does not require a guaranteed selling price; the report is an opinion with stated assumptions.

  • C. A statement that every BPO is a certified appraisal.

    The required statement distinguishes a BPO or CMA from an appraisal.

Check the rule: 225 ILCS 454/10-45: BPO and CMA requirements.

Study this topicPSI broker outline II.L

21. Spouses hold their Illinois homestead as tenants by the entirety. One spouse alone signs a lease of that homestead, without the other's signature. Which requirement has been missed?

Both tenants by the entirety must sign · Additional Illinois Laws and Regulations

  1. Both tenants must sign an effective lease of the homestead.
  2. Only the spouse collecting the rent must sign.
  3. Only the spouse with the higher income must sign.
  4. Neither spouse must sign when a broker arranges the lease.

Correct answer: A. Both tenants must sign an effective lease of the homestead.

Section 1c states that a deed, contract for deed, mortgage, or lease of homestead property held in tenancy by the entirety is not effective unless signed by both tenants. Equal ownership does not authorize one spouse to sign for the other.

Why the other choices miss the mark

  • B. Only the spouse collecting the rent must sign.

    Who collects rent does not replace the statute's both-signatures requirement.

  • C. Only the spouse with the higher income must sign.

    Income does not determine the required signatories.

  • D. Neither spouse must sign when a broker arranges the lease.

    Broker involvement does not eliminate the owners' required signatures.

Check the rule: 765 ILCS 1005/1c: tenancy by the entirety.

Study this topicPSI broker outline III.A

22. A seller has never opened a sealed wall and knows of no hidden defect there. Under the Residential Real Property Disclosure Act alone, must the seller open the wall to complete the report?

Actual knowledge in seller reports · Disclosures

  1. Yes. The report requires destructive investigation of every concealed space.
  2. No, and the seller may omit a hidden defect even if the seller knows it exists.
  3. Yes, unless the buyer promises never to inspect.
  4. No. The Act requires disclosure of known material defects but no specific investigation to complete the report.

Correct answer: D. No. The Act requires disclosure of known material defects but no specific investigation to complete the report.

Section 25 requires actual-knowledge disclosure and says the seller need not make a specific investigation or inquiry to complete the statement. This does not allow concealment of a known defect or replace a buyer's inspection.

Why the other choices miss the mark

  • A. Yes. The report requires destructive investigation of every concealed space.

    Section 25(c) expressly does not impose a specific investigation requirement for completing the statement.

  • B. No, and the seller may omit a hidden defect even if the seller knows it exists.

    Lack of an investigation duty does not excuse withholding actual knowledge.

  • C. Yes, unless the buyer promises never to inspect.

    The buyer's inspection plans do not create the claimed seller investigation requirement.

Check the rule: 765 ILCS 77/25: actual knowledge.

Study this topicPSI broker outline IV.D

23. A homeowner who is exclusively listed with another firm contacts a broker to discuss representation after that agreement expires. Does Rule 1450.770(b)(3) allow discussing a possible future agreement?

Talking about a future exclusive agreement · Illinois Real Estate License Act

  1. No. A future agreement can never be discussed during an existing exclusive agreement.
  2. Yes, and the new discussion automatically cancels the existing agreement.
  3. Yes. The consumer-initiated contact is one of the rule's permitted conditions.
  4. Only if the broker first pays the current firm a referral fee.

Correct answer: C. Yes. The consumer-initiated contact is one of the rule's permitted conditions.

The rule allows a discussion of a possible future agreement when the consumer initiates contact. This is not permission to induce a breach of the current exclusive agreement or pretend it has already ended.

Why the other choices miss the mark

  • A. No. A future agreement can never be discussed during an existing exclusive agreement.

    That ignores the rule's consumer-initiated-contact condition.

  • B. Yes, and the new discussion automatically cancels the existing agreement.

    Discussing future services does not itself terminate the current contract.

  • D. Only if the broker first pays the current firm a referral fee.

    Payment of a referral fee is not the condition stated for this consumer-initiated discussion.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

24. An applicant is admitted to practice law by the Illinois Supreme Court and is currently in active standing. Under Section 5-27, what does the attorney qualification change in the broker application requirements?

Attorney education exemption · Licensing Requirements

  1. It authorizes brokerage without applying for a broker license.
  2. It replaces the broker examination with a law-school transcript.
  3. It provides the stated education exemption, rather than an automatic broker license.
  4. It lowers the minimum broker age to 16.

Correct answer: C. It provides the stated education exemption, rather than an automatic broker license.

Section 5-27 exempts a qualifying Illinois attorney from the specified education requirements. It does not automatically issue a broker license or erase the remaining applicable requirements, such as passing the examination.

Why the other choices miss the mark

  • A. It authorizes brokerage without applying for a broker license.

    The education exemption is not an automatic broker credential for ordinary brokerage activities.

  • B. It replaces the broker examination with a law-school transcript.

    The statutory education exemption does not waive the broker examination.

  • D. It lowers the minimum broker age to 16.

    Attorney status does not create the proposed lower age threshold.

Check the rule: 225 ILCS 454/5-27: broker qualifications.

Study this topicPSI broker outline I.D

25. An owner divides land into parcels of six acres each, with no new streets or easements of access. Which statement best describes the state Plat Act rule?

Plat Act exemption · Additional Illinois Laws and Regulations

  1. Every division into two parcels always requires a state subdivision plat.
  2. The exemption applies even when every parcel is only three acres.
  3. The stated division fits the five-acre-or-more exemption, while local requirements still need review.
  4. The exemption automatically waives all county and municipal standards.

Correct answer: C. The stated division fits the five-acre-or-more exemption, while local requirements still need review.

Section 1(b)(1) exempts divisions into parcels of at least five acres that involve no new streets or access easements. The Act also preserves certain local authority, so a state exemption should not be described as universal permission to ignore local requirements.

Why the other choices miss the mark

  • A. Every division into two parcels always requires a state subdivision plat.

    The Act contains exemptions, including the stated acreage and access conditions.

  • B. The exemption applies even when every parcel is only three acres.

    That would not meet this five-acre-or-more exemption.

  • D. The exemption automatically waives all county and municipal standards.

    A state-law exemption does not erase all applicable local requirements.

Check the rule: 765 ILCS 205/1: subdivisions and exemptions.

Study this topicPSI broker outline III.E

26. A relocation company licensee coaches a buyer to break an exclusive representation agreement so the licensee can redirect the buyer and collect a referral fee. How does Rule 1450.780 treat this conduct?

Referral-fee interference · Illinois Real Estate License Act

  1. It is allowed whenever the new broker offers a lower commission.
  2. It prohibits this interference with the existing agency relationship.
  3. It is allowed if the buyer signs the replacement agreement voluntarily.
  4. It is prohibited only if no written exclusive agreement exists.

Correct answer: B. It prohibits this interference with the existing agency relationship.

The rule bars inducing termination or amendment of another licensee's exclusive agency agreement to obtain a referral fee. Merely communicating relocation benefits is different when it does not advise or encourage breaking the agreement.

Why the other choices miss the mark

  • A. It is allowed whenever the new broker offers a lower commission.

    A fee difference does not authorize interference to obtain a referral payment.

  • C. It is allowed if the buyer signs the replacement agreement voluntarily.

    A later signature does not excuse the prohibited inducement described in the question.

  • D. It is prohibited only if no written exclusive agreement exists.

    The rule specifically addresses interference with an existing written exclusive agreement.

Check the rule: 68 Ill. Adm. Code 1450.780: referral fees.

Study this topicPSI broker outline II.F

27. A buyer treats a completed Illinois seller disclosure report as a guarantee that the home has no defects. What is the better explanation?

Report is not a warranty · Disclosures

  1. Every No answer guarantees that the item will never fail.
  2. The report communicates the seller's required knowledge; it is not a warranty or a substitute for inspections.
  3. The report replaces the need for any independent inspection.
  4. The report may be ignored whenever the property is sold as is.

Correct answer: B. The report communicates the seller's required knowledge; it is not a warranty or a substitute for inspections.

The statutory report explains its limits and encourages inspections. A seller must disclose required known conditions, but completing the form does not certify every concealed component or guarantee future performance.

Why the other choices miss the mark

  • A. Every No answer guarantees that the item will never fail.

    The form does not provide that future-performance warranty.

  • C. The report replaces the need for any independent inspection.

    The statutory form explicitly distinguishes disclosure from inspections.

  • D. The report may be ignored whenever the property is sold as is.

    An as-is label does not automatically eliminate disclosure duties for a covered transfer.

Check the rule: 765 ILCS 77/35: disclosure report.

Study this topicPSI broker outline IV.D

28. A residential lease executed in 2026 requires every rent payment to be made by recurring electronic funds transfer. What does Section 4 of the Landlord and Tenant Act say about making that method mandatory?

Electronic rent payment · Additional Illinois Laws and Regulations

  1. It is allowed whenever the tenant owns a smartphone.
  2. The landlord may not require electronic funds transfer as the payment method.
  3. It is allowed if the tenant signs the electronic-payment clause.
  4. It is prohibited only for commercial leases.

Correct answer: B. The landlord may not require electronic funds transfer as the payment method.

Section 4 prohibits requiring a tenant or prospective tenant to remit residential lease amounts by electronic funds transfer for the agreements it covers. Offering electronic payment is different from requiring it.

Why the other choices miss the mark

  • A. It is allowed whenever the tenant owns a smartphone.

    Access to a device does not remove the prohibition on a mandatory payment method.

  • C. It is allowed if the tenant signs the electronic-payment clause.

    A lease clause does not override the statute's prohibition.

  • D. It is prohibited only for commercial leases.

    Section 4 addresses residential lease amounts; the question is within that subject.

Check the rule: 765 ILCS 705/4: electronic funds transfer.

Study this topicPSI broker outline III.I

29. A seller and sponsoring broker agree to change the commission in their listing agreement. Which method follows Rule 1450.770(j) and (k)?

Commission amendments · Illinois Real Estate License Act

  1. Write the new commission into the purchase contract as the only amendment.
  2. Use a phone conversation and let the closing statement supply the writing.
  3. Have only the buyer approve the change in an email.
  4. Use a written amendment signed by the parties to the brokerage agreement.

Correct answer: D. Use a written amendment signed by the parties to the brokerage agreement.

A change to the amount or timing of compensation must be in writing and signed by the brokerage-agreement parties. The purchase contract may not be used to amend compensation in the brokerage agreement.

Why the other choices miss the mark

  • A. Write the new commission into the purchase contract as the only amendment.

    Subsection (k) bars using the purchase contract to amend brokerage-agreement compensation.

  • B. Use a phone conversation and let the closing statement supply the writing.

    The rule calls for a written amendment signed by the parties, not a later substitute.

  • C. Have only the buyer approve the change in an email.

    The buyer is not a substitute for the parties to the seller's brokerage agreement.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

30. A seller transfers newly constructed residential property that has never been occupied. Which distinction matters under Section 15 of the Residential Real Property Disclosure Act?

New construction exemption · Disclosures

  1. Every remodeled house receives the same exemption automatically.
  2. The Act exempts the transfer of new residential property that has never been occupied.
  3. The exemption applies only if the buyer waives an inspection.
  4. The exemption proves the seller has no obligations under any other law.

Correct answer: B. The Act exempts the transfer of new residential property that has never been occupied.

Section 15 includes a specific exemption for newly constructed residential real property that has never been occupied. A renovated older home is not automatically the same case. Other applicable disclosure or construction duties may still exist.

Why the other choices miss the mark

  • A. Every remodeled house receives the same exemption automatically.

    Renovation does not necessarily make property newly constructed and never occupied.

  • C. The exemption applies only if the buyer waives an inspection.

    The stated statutory exemption is not conditioned on an inspection waiver.

  • D. The exemption proves the seller has no obligations under any other law.

    An exemption from this Act is not a blanket exemption from other applicable duties.

Check the rule: 765 ILCS 77/15: exempt transfers.

Study this topicPSI broker outline IV.D

31. A neighbor who holds no real estate license and is not a principal to the transaction asks a broker for a finder fee for introducing a buyer. May the broker pay that referral fee?

Unlicensed finder fee · Illinois Real Estate License Act

  1. No. The nonprincipal unlicensed person cannot receive that referral fee.
  2. Yes, if the broker pays it from personal funds.
  3. Yes, if the neighbor did not negotiate the sale.
  4. Yes, if the broker calls it a thank-you commission.

Correct answer: A. No. The nonprincipal unlicensed person cannot receive that referral fee.

Section 10-15 and Rule 1450.780 prohibit paying a referral fee to an unlicensed person who is not a principal to the transaction. The question deliberately identifies the neighbor as a nonprincipal; a transaction-party incentive raises a different analysis.

Why the other choices miss the mark

  • B. Yes, if the broker pays it from personal funds.

    The source of the broker's payment does not cure the prohibited recipient.

  • C. Yes, if the neighbor did not negotiate the sale.

    The referral-fee restriction still applies to the nonprincipal unlicensed recipient.

  • D. Yes, if the broker calls it a thank-you commission.

    Renaming a payment does not change its character as compensation for the referral.

Check the rule: 225 ILCS 454/10-15: referral fees; 68 Ill. Adm. Code 1450.780: referral fees.

Study this topicPSI broker outline II.E

32. A builder is constructing a new Illinois home covered by the Radon Resistant Construction Act. Which statement fits Section 20?

Passive radon construction · Additional Illinois Laws and Regulations

  1. A radon disclosure brochure replaces the construction requirement.
  2. No passive system is needed unless the buyer requests one.
  3. The required system guarantees that no radon test can ever be elevated.
  4. The new construction must include passive radon-resistant construction.

Correct answer: D. The new construction must include passive radon-resistant construction.

Section 20 requires passive radon-resistant construction for the new residential construction covered by the Act. This construction requirement is separate from radon disclosure in a property sale and is not a promise that future radon levels will be zero.

Why the other choices miss the mark

  • A. A radon disclosure brochure replaces the construction requirement.

    Informing a buyer and installing required construction features are separate obligations.

  • B. No passive system is needed unless the buyer requests one.

    The requirement is imposed by the Act, not by a buyer's optional request.

  • C. The required system guarantees that no radon test can ever be elevated.

    A construction requirement does not establish that absolute health or performance guarantee.

Check the rule: 420 ILCS 52/20: passive radon construction.

Study this topicPSI broker outline III.K

33. A first-time Illinois broker receives a license more than 180 days before the next broker renewal deadline. Which education requirement ordinarily applies before that first renewal?

First broker renewal education · Licensing Requirements

  1. Repeat all 75 prelicense hours instead of taking post-license courses.
  2. Complete the three 15-hour post-license courses and their required final exams.
  3. Wait until the second renewal in every case.
  4. Take ordinary continuing education only, with no post-license courses.

Correct answer: B. Complete the three 15-hour post-license courses and their required final exams.

Section 5-50(b) requires 45 hours of post-license education in three 15-hour courses, with the required exams. The exception allowing completion by the second renewal is for first licenses received within the 180 days before the next deadline; this question excludes that exception.

Why the other choices miss the mark

  • A. Repeat all 75 prelicense hours instead of taking post-license courses.

    The first-renewal requirement described in Section 5-50 is post-license education.

  • C. Wait until the second renewal in every case.

    The delayed deadline is conditional, not universal; the stated timing falls outside it.

  • D. Take ordinary continuing education only, with no post-license courses.

    Ordinary continuing education does not replace the specified 45-hour first-license requirement.

Check the rule: 225 ILCS 454/5-50: renewal and post-license education.

Study this topicPSI broker outline I.G

34. A landlord prepares a written renewal for a covered lower-level unit with a known flood history within ten years. Is leaving the required flood disclosure out of the renewal acceptable because it appeared in the first lease?

Flood disclosure in a renewal · Disclosures

  1. Yes. Flood disclosures are a one-time duty for the building's lifetime.
  2. Yes, if the landlord verbally confirms that the risk is unchanged.
  3. Yes, unless the tenant changes employers.
  4. No. The statute also requires the disclosure in the written renewal lease.

Correct answer: D. No. The statute also requires the disclosure in the written renewal lease.

Section 25 expressly addresses the written lease or written renewal lease and requires signatures of both parties. Prior disclosure is not a reason to omit the required information from the renewal.

Why the other choices miss the mark

  • A. Yes. Flood disclosures are a one-time duty for the building's lifetime.

    The statute expressly includes renewal leases.

  • B. Yes, if the landlord verbally confirms that the risk is unchanged.

    A verbal comment does not replace the required written renewal disclosure.

  • C. Yes, unless the tenant changes employers.

    The tenant's employment is unrelated to the flooding-disclosure requirement.

Check the rule: 765 ILCS 705/25: rental flood disclosure.

Study this topicPSI broker outline IV.E

35. A broker signs an employment agreement with a new brokerage. Registration of sponsorship has not yet occurred. Is signing the employment agreement alone enough to begin licensed activities for that firm?

Sponsorship before licensed work · Illinois Real Estate License Act

  1. Yes, because an employment signature automatically updates IDFPR records.
  2. Yes, but only for transactions below $250,000.
  3. No. The new sponsorship must be registered as required before licensed activities begin.
  4. Yes, if compensation is deferred until registration.

Correct answer: C. No. The new sponsorship must be registered as required before licensed activities begin.

Section 5-27(c) requires valid sponsorship to be registered before an applicant begins licensed activities, and Section 5-40 governs sponsorship changes. A private employment agreement and the required licensing registration are distinct steps.

Why the other choices miss the mark

  • A. Yes, because an employment signature automatically updates IDFPR records.

    The employment agreement is not automatic registration with the Department.

  • B. Yes, but only for transactions below $250,000.

    The rule does not create a transaction-value exception.

  • D. Yes, if compensation is deferred until registration.

    Delaying payment does not authorize licensed activity before valid sponsorship.

Check the rule: 225 ILCS 454/5-27: broker qualifications; 225 ILCS 454/5-40: sponsorship.

Study this topicPSI broker outline II.C

36. A commercial brokerage is named in a qualifying signed fee agreement. Its sponsored salesperson performed much of the work. Who does Section 10 identify as the party entitled to the statutory broker lien?

Who may claim the commercial lien · Additional Illinois Laws and Regulations

  1. Every employee who worked on the file gets a separate statutory lien.
  2. Only the property's lender can ever claim this lien.
  3. The broker named in the signed instrument, rather than its employee or independent contractor.
  4. Any licensee may claim it without being named in a signed instrument.

Correct answer: C. The broker named in the signed instrument, rather than its employee or independent contractor.

Section 10(a) makes the lien available to the broker named in the qualifying instrument, not that broker's employee or independent contractor. The remaining entitlement, recording, and notice requirements still must be satisfied.

Why the other choices miss the mark

  • A. Every employee who worked on the file gets a separate statutory lien.

    The Act expressly distinguishes the named broker from its employees and independent contractors.

  • B. Only the property's lender can ever claim this lien.

    This Act creates a qualifying broker lien, not a lender-only security interest.

  • D. Any licensee may claim it without being named in a signed instrument.

    That discards the written-instrument and named-broker requirements.

Check the rule: 770 ILCS 15/10: commercial broker liens.

Study this topicPSI broker outline III.J

37. Before buying a covered pre-1978 home, a buyer receives the required lead information. How is the purchase inspection opportunity ordinarily handled?

Lead inspection opportunity · Disclosures

  1. Allow a ten-day opportunity unless the parties agree in writing to a different period or the buyer waives it in writing.
  2. The opportunity is always exactly ten days and can never be changed.
  3. Waiving the inspection also automatically waives the pamphlet and warning.
  4. The seller can cancel the opportunity with an oral statement.

Correct answer: A. Allow a ten-day opportunity unless the parties agree in writing to a different period or the buyer waives it in writing.

The federal rule ordinarily provides a ten-day opportunity for a lead inspection or risk assessment. The period can be changed by written agreement, or the buyer can waive the opportunity in writing. That does not waive the separate disclosure package.

Why the other choices miss the mark

  • B. The opportunity is always exactly ten days and can never be changed.

    The federal rule permits the stated written modification or waiver.

  • C. Waiving the inspection also automatically waives the pamphlet and warning.

    The inspection opportunity and required disclosures are separate obligations.

  • D. The seller can cancel the opportunity with an oral statement.

    An oral unilateral cancellation does not satisfy the specified written agreement or buyer waiver.

Check the rule: U.S. EPA: lead disclosures for sellers and lessors.

Study this topicPSI broker outline IV.E

38. A buyer signs a corrected purchase contract at 3 p.m. on Tuesday. Under Rule 1450.775(c), when is a true copy ordinarily due to that buyer?

Delivering document copies · Illinois Real Estate License Act

  1. Only after the contract closes.
  2. Within ten business days after the correction.
  3. Within 24 hours after signing or initialing the correction.
  4. Only when the buyer requests the copy.

Correct answer: C. Within 24 hours after signing or initialing the correction.

The rule requires a true copy of the original or corrected document within 24 hours after the person signs or initials it. It is not a next-closing or attorney-review deadline.

Why the other choices miss the mark

  • A. Only after the contract closes.

    The copy deadline is tied to signing or initialing, not closing.

  • B. Within ten business days after the correction.

    The stated rule requires 24 hours, a much shorter period.

  • D. Only when the buyer requests the copy.

    The delivery duty does not depend on the signer asking.

Check the rule: 68 Ill. Adm. Code 1450.775: written agreements.

Study this topicPSI broker outline II.J

39. A seller directs a broker to reject buyers because of a protected characteristic. How should the broker treat that instruction?

Lawful client directions · Illinois Real Estate License Act

  1. Refuse to carry out the unlawful instruction.
  2. Follow it because obedience to a client overrides fair housing law.
  3. Follow it only if the seller puts it in writing.
  4. Follow it but keep it out of the transaction file.

Correct answer: A. Refuse to carry out the unlawful instruction.

Section 15-15 requires compliance with a client's lawful specific directions. The word lawful matters. Agency duties do not authorize prohibited discrimination, even when the client is insistent.

Why the other choices miss the mark

  • B. Follow it because obedience to a client overrides fair housing law.

    The duty concerns lawful directions and cannot override legal protections.

  • C. Follow it only if the seller puts it in writing.

    A written unlawful direction is still unlawful.

  • D. Follow it but keep it out of the transaction file.

    Concealing the instruction does not make the conduct permissible.

Check the rule: 225 ILCS 454/15-15: duties to a client.

Study this topicPSI broker outline II.A

40. Why does Illinois regulate real estate brokerage through licensing and professional standards?

Purpose of license law · Illinois Real Estate License Act

  1. To guarantee that every licensed broker's client earns a profit.
  2. To establish one commission rate that every brokerage must charge.
  3. To make a broker license equivalent to a law license.
  4. To protect the public through standards of competence and conduct.

Correct answer: D. To protect the public through standards of competence and conduct.

Section 1-5 identifies protection of the public and minimum competence and professional-conduct standards as the purpose of the Act. Licensing is not a guarantee of investment results or a mechanism for setting uniform commissions.

Why the other choices miss the mark

  • A. To guarantee that every licensed broker's client earns a profit.

    Licensing standards do not guarantee transaction or investment outcomes.

  • B. To establish one commission rate that every brokerage must charge.

    The Act's public-protection purpose is not a uniform pricing mandate.

  • C. To make a broker license equivalent to a law license.

    Regulation of brokerage does not authorize unrestricted legal practice.

Check the rule: 225 ILCS 454/1-5: public protection.

Study this topicPSI broker outline II.N

Illinois Form C: 40 questions with full explanations
1. A home was the site of a past event that did not affect the physical condition of the property, its structures, or environment. What distinction does Section 15-20 make?

Physical defects versus stigma · Illinois Real Estate License Act

  1. It allows concealment of every physical defect associated with an event.
  2. It makes all neighboring physical conditions irrelevant even if they substantially reduce value.
  3. It protects a licensee from a failure-to-disclose claim for that specified nonphysical history.
  4. It turns every historical event into a mandatory structural warranty.

Correct answer: C. It protects a licensee from a failure-to-disclose claim for that specified nonphysical history.

Section 15-20 distinguishes certain nonphysical history from physical conditions. The protection should not be stretched to conceal a known physical defect or to justify a false statement. Read the facts about physical effects carefully.

Why the other choices miss the mark

  • A. It allows concealment of every physical defect associated with an event.

    The statutory protection described here depends on the absence of the specified physical effects.

  • B. It makes all neighboring physical conditions irrelevant even if they substantially reduce value.

    The statute does not create that unlimited neighboring-condition exclusion.

  • D. It turns every historical event into a mandatory structural warranty.

    The section creates a disclosure distinction, not a warranty of the structure.

Check the rule: 225 ILCS 454/15-20: nonphysical property history.

Study this topicPSI broker outline II.A

2. A nonexempt Illinois conveyance has taxable value of $250,001, with no deduction. What is the state transfer tax at $0.50 per $500 or fraction?

Rounding a partial transfer-tax unit · Additional Illinois Laws and Regulations

  1. $250.00.
  2. $250.50.
  3. $375.75.
  4. $500.50.

Correct answer: B. $250.50.

Divide $250,001 by $500 to get 500.002 units. A fraction counts as another unit, so use 501 units. Multiplying by $0.50 gives $250.50. Round up the unit count before applying the rate.

Why the other choices miss the mark

  • A. $250.00.

    This ignores the fractional unit created by the final dollar.

  • C. $375.75.

    This uses a combined $0.75 rate; the question asks for state tax only.

  • D. $500.50.

    This applies $1 per unit rather than the stated $0.50 state rate.

Check the rule: 35 ILCS 200/31-10: state transfer tax.

Study this topicPSI broker outline III.C

3. A licensee owns 1% of a private LLC buying a home. The licensee says the interest is too small to require written licensee-status disclosure. What is the better answer?

Small ownership interest · Disclosures

  1. The licensee is correct because only majority owners disclose.
  2. Disclosure is required only if the LLC pays the licensee a salary.
  3. The LLC membership still triggers the stated disclosure requirement.
  4. Oral disclosure at closing is sufficient for a small interest.

Correct answer: C. The LLC membership still triggers the stated disclosure requirement.

Rule 1450.765 includes an LLC manager or member and direct or indirect interests. It does not create a 50% or controlling-interest threshold for this disclosure. The licensee must disclose status in writing to all parties before initiating the transaction.

Why the other choices miss the mark

  • A. The licensee is correct because only majority owners disclose.

    The rule does not limit LLC-member disclosure to majority owners.

  • B. Disclosure is required only if the LLC pays the licensee a salary.

    A salary is not the trigger; the described membership interest is relevant.

  • D. Oral disclosure at closing is sufficient for a small interest.

    The requirement is written disclosure before initiation, not a late oral comment.

Check the rule: 68 Ill. Adm. Code 1450.765: disclosure of licensee status; 225 ILCS 454/10-27: licensee status.

Study this topicPSI broker outline IV.B

4. A broker wants a quick commission and urges a seller to accept an offer without discussing a competing offer the broker is required to present. Which duty is most directly at issue?

Client interest versus self-interest · Illinois Real Estate License Act

  1. Maximizing the broker's income before considering the client's terms.
  2. Allowing the broker to choose which required offers the client may see.
  3. Promoting the client's interests rather than the broker's self-interest.
  4. Treating every competing offer as confidential from the seller who received it.

Correct answer: C. Promoting the client's interests rather than the broker's self-interest.

Section 15-15 requires acting consistently with the client's best interests and timely presenting offers when that duty applies. Wanting a faster commission does not justify suppressing required information about another offer.

Why the other choices miss the mark

  • A. Maximizing the broker's income before considering the client's terms.

    The statute expressly distinguishes client interests from the licensee's self-interest.

  • B. Allowing the broker to choose which required offers the client may see.

    A broker's preference does not authorize withholding an offer the broker must present.

  • D. Treating every competing offer as confidential from the seller who received it.

    Required presentation to the seller is not defeated merely by labeling an offer confidential from that seller.

Check the rule: 225 ILCS 454/15-15: duties to a client.

Study this topicPSI broker outline II.A

5. A standard candidate completed the required Illinois broker prelicense education 25 months ago and has not tested. What issue should the candidate resolve before trying to schedule?

Education-validity clock · Licensing Requirements

  1. Education certificates remain valid forever once issued.
  2. Passing a national practice test automatically extends eligibility.
  3. The booklet's two-year validity period for the prelicense education has elapsed.
  4. The one-year post-exam application period has begun even though no exam was passed.

Correct answer: C. The booklet's two-year validity period for the prelicense education has elapsed.

The PSI booklet states that prelicense education is valid for two years after satisfactory completion. Twenty-five months is beyond that period. Confirm the required new eligibility steps instead of assuming the certificate remains valid indefinitely.

Why the other choices miss the mark

  • A. Education certificates remain valid forever once issued.

    The booklet expressly gives a two-year education-validity period.

  • B. Passing a national practice test automatically extends eligibility.

    An unofficial practice score cannot extend licensing-exam eligibility.

  • D. The one-year post-exam application period has begun even though no exam was passed.

    That is a different deadline triggered by a passing exam, not by course completion alone.

Check the rule: PSI Illinois Candidate Information Booklet, June 24, 2026.

Study this topicPSI broker outline I.E

6. For this Illinois tax calculation, the assessed value is $120,000 and the applicable equalization factor is 0.95. What is the equalized assessed value before exemptions?

Equalized assessed value · Additional Illinois Laws and Regulations

  1. $126,315.79.
  2. $6,000.
  3. $114,000.
  4. $120,000.

Correct answer: C. $114,000.

Multiply the assessed value by the stated equalization factor: $120,000 × 0.95 = $114,000. This is equalized assessed value before exemptions, not the tax bill or the property's sale price.

Why the other choices miss the mark

  • A. $126,315.79.

    This divides by the factor instead of multiplying the assessed value by it.

  • B. $6,000.

    That is the reduction from $120,000, not the resulting equalized value.

  • D. $120,000.

    That ignores the supplied equalization factor.

Check the rule: Illinois Department of Revenue: The Illinois Property Tax System, January 2026 (pp. 6, 18, 22).

Study this topicPSI broker outline III.F

7. A written buyer brokerage agreement names the parties and describes the broker's duties, but says nothing about compensation or when it will be paid. What is missing under Rule 1450.770(c)?

Buyer agreement contents · Illinois Real Estate License Act

  1. The agreed basis or amount of compensation and time of payment.
  2. Only a statement that compensation will always be set by law.
  3. Nothing, because compensation terms belong only in seller agreements.
  4. Only the appraised value of whichever home is eventually purchased.

Correct answer: A. The agreed basis or amount of compensation and time of payment.

The current buyer-agreement rule requires the agreed compensation basis or amount and payment timing, along with the other required terms and signatures. These items should not be left for an assumption at closing.

Why the other choices miss the mark

  • B. Only a statement that compensation will always be set by law.

    The rule requires the agreed basis or amount; it does not supply a universal statutory commission.

  • C. Nothing, because compensation terms belong only in seller agreements.

    Subsection (c) expressly includes compensation in buyer or tenant agreements.

  • D. Only the appraised value of whichever home is eventually purchased.

    An appraisal figure is not a replacement for the compensation term.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

8. A licensee holds a beneficial interest in a land trust that is selling property. The trustee alone appears on the deed. What must the licensee recognize?

Licensee with a beneficial interest · Disclosures

  1. Only the person named on the deed can have a disclosure duty.
  2. The beneficial interest still requires written licensee-status disclosure.
  3. Land trusts automatically exempt every beneficiary from real estate rules.
  4. The duty begins only if the trustee gives the licensee the sale proceeds.

Correct answer: B. The beneficial interest still requires written licensee-status disclosure.

Rule 1450.765 expressly includes a beneficial interest in a land trust involved in the sale, lease, or purchase. The trustee's appearance on the deed does not remove the beneficiary licensee's disclosure duty.

Why the other choices miss the mark

  • A. Only the person named on the deed can have a disclosure duty.

    The rule expressly covers this indirect beneficial interest.

  • C. Land trusts automatically exempt every beneficiary from real estate rules.

    The rule specifically includes licensee beneficiaries; no blanket exemption applies.

  • D. The duty begins only if the trustee gives the licensee the sale proceeds.

    Waiting for proceeds comes after the required pre-initiation disclosure timing.

Check the rule: 68 Ill. Adm. Code 1450.765: disclosure of licensee status; 225 ILCS 454/10-27: licensee status.

Study this topicPSI broker outline IV.B

9. Under the Illinois land-trust definition, how is the beneficiary's interest classified even though the trustee holds title to real estate?

Beneficial interest in a land trust · Additional Illinois Laws and Regulations

  1. As personal property.
  2. As the trustee's legal title transferred automatically to the beneficiary.
  3. As a mortgage lien in every land trust.
  4. As a public easement for access across the property.

Correct answer: A. As personal property.

The statutory land-trust definition treats the beneficiary's interest as personal property, while legal and equitable title to the real estate sits with the trustee. Do not assume that every interest connected with land is itself title to the land.

Why the other choices miss the mark

  • B. As the trustee's legal title transferred automatically to the beneficiary.

    The definition keeps legal and equitable real-estate title with the trustee.

  • C. As a mortgage lien in every land trust.

    A beneficial interest is not automatically a mortgage securing a loan.

  • D. As a public easement for access across the property.

    An easement right and a beneficial trust interest are different interests.

Check the rule: 765 ILCS 405/1: land trusts.

Study this topicPSI broker outline III.A

10. A broker prepares a seller listing agreement. Which pair of terms does Rule 1450.770(d) expressly require, in addition to the other listed agreement terms?

Seller agreement property identification · Illinois Real Estate License Act

  1. Only a neighborhood nickname and a hoped-for commission.
  2. Only the seller's mortgage balance and credit score.
  3. A guaranteed closing date and a promise of appreciation.
  4. The list price and identification of the real property.

Correct answer: D. The list price and identification of the real property.

The rule requires the list price and property identification by address and/or legal description. It also requires compensation, parties, designated agents, signatures, duties, and duration terms. A marketing nickname alone does not reliably identify the listed property.

Why the other choices miss the mark

  • A. Only a neighborhood nickname and a hoped-for commission.

    Those details do not supply the specified list price and real-property identification.

  • B. Only the seller's mortgage balance and credit score.

    Those are not substitutes for the required listing terms.

  • C. A guaranteed closing date and a promise of appreciation.

    The rule does not replace property identification and price with these guarantees.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

11. A licensee owns part of the LLC selling a property and wants to act as dual agent for the transaction. Both sides offer written consent. What does Rule 1450.820 provide?

Dual agency and personal ownership · Disclosures

  1. The licensee may act as dual agent because both sides signed consent.
  2. The licensee may act as dual agent if the ownership share is below 10%.
  3. The licensee may act as dual agent if commission is waived.
  4. The licensee may not serve as dual agent in that transaction.

Correct answer: D. The licensee may not serve as dual agent in that transaction.

The rule prohibits dual agency when the licensee, or an entity in which the licensee has or will have a direct or indirect ownership interest, is a party. Written consent does not override this ownership-based prohibition.

Why the other choices miss the mark

  • A. The licensee may act as dual agent because both sides signed consent.

    Consent does not cure the separate ownership-based prohibition.

  • B. The licensee may act as dual agent if the ownership share is below 10%.

    The rule uses any ownership interest, not the proposed threshold.

  • C. The licensee may act as dual agent if commission is waived.

    The prohibition concerns the ownership interest, not whether commission is charged.

Check the rule: 68 Ill. Adm. Code 1450.820: dual agency.

Study this topicPSI broker outline IV.A

12. A brokerage agreement is labeled Exclusive, but its text waives the minimum services in Section 15-75. How does Rule 1450.770(b)(2) treat that agreement?

Waiver changes exclusivity · Illinois Real Estate License Act

  1. As exclusive because the heading controls every conflicting term.
  2. As nonexclusive.
  3. As a purchase contract that transfers the property automatically.
  4. As exempt from all brokerage-agreement requirements.

Correct answer: B. As nonexclusive.

The rule expressly treats omission or waiver of the statutory minimum-services language as making the agreement nonexclusive under the Act's definition. The heading cannot preserve exclusivity while the text waives those services.

Why the other choices miss the mark

  • A. As exclusive because the heading controls every conflicting term.

    The rule specifically addresses the minimum-services language, not just the heading.

  • C. As a purchase contract that transfers the property automatically.

    Changing the classification of a brokerage agreement does not convey property.

  • D. As exempt from all brokerage-agreement requirements.

    Nonexclusive agreements still have applicable written-agreement requirements.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements; 225 ILCS 454/15-75: minimum services.

Study this topicPSI broker outline II.D

13. A standard broker candidate, who is not education exempt, has failed the licensing examination on the fourth allowed attempt. What does the PSI booklet require before another try?

Fourth unsuccessful exam attempt · Licensing Requirements

  1. Keep repeating only the failed portion without further education.
  2. Retake the 75-hour broker education and the entire examination.
  3. Wait one week and receive an automatic fifth attempt.
  4. Take the residential leasing exam instead and receive a broker license.

Correct answer: B. Retake the 75-hour broker education and the entire examination.

The booklet states that after the fourth failed attempt, a nonexempt broker candidate must retake the 75-hour education and the entire examination. This differs from the usual earlier-attempt rule of repeating only the failed portion.

Why the other choices miss the mark

  • A. Keep repeating only the failed portion without further education.

    That overlooks the booklet's specific consequence after the fourth failure.

  • C. Wait one week and receive an automatic fifth attempt.

    A short waiting period does not replace the required education and exam reset.

  • D. Take the residential leasing exam instead and receive a broker license.

    A different license examination does not satisfy the broker requirements.

Check the rule: PSI Illinois Candidate Information Booklet, June 24, 2026.

Study this topicPSI broker outline I.E

14. After consenting to dual agency, a seller asks the broker for the buyer's confidential maximum offer. The buyer has not authorized that disclosure. Which response respects the dual-agency limits?

Protecting confidences under dual agency · Disclosures

  1. Reveal it because the seller listed with the broker first.
  2. Reveal it because the seller pays a larger share of the fee.
  3. Hint at the exact maximum without naming the buyer as the source.
  4. Decline to reveal the buyer's confidential maximum.

Correct answer: D. Decline to reveal the buyer's confidential maximum.

A dual agent cannot use one client's confidential bargaining information for the other client merely because both consented to dual agency. The statutory disclosure explains these limits, including limits on confidential price information.

Why the other choices miss the mark

  • A. Reveal it because the seller listed with the broker first.

    Being the earlier client does not give the seller the other client's confidences.

  • B. Reveal it because the seller pays a larger share of the fee.

    The compensation split does not override confidentiality.

  • C. Hint at the exact maximum without naming the buyer as the source.

    An indirect disclosure of the same confidence does not solve the problem.

Check the rule: 225 ILCS 454/15-45: dual agency.

Study this topicPSI broker outline IV.A

15. Two condominium units have different percentages of ownership in the common elements. For ordinary common expenses, what should a broker check before telling the buyers their shares will be identical?

Condominium percentage in the declaration · Additional Illinois Laws and Regulations

  1. Only whether the units have the same number of occupants.
  2. Only whether both buyers use the same mortgage lender.
  3. Only the asking price; higher asking prices always produce identical dues.
  4. The percentages stated in the declaration.

Correct answer: D. The percentages stated in the declaration.

Section 9(a) generally bases each unit's common-expense share on its percentage of ownership in the common elements in the declaration. The number of units alone does not prove equal shares. Special statutory allocations should also be checked where relevant.

Why the other choices miss the mark

  • A. Only whether the units have the same number of occupants.

    Occupancy count is not the ordinary allocation basis in Section 9(a).

  • B. Only whether both buyers use the same mortgage lender.

    Financing arrangements do not set the declaration's ownership percentages.

  • C. Only the asking price; higher asking prices always produce identical dues.

    Asking prices do not replace the declaration's allocation.

Check the rule: 765 ILCS 605/9: condominium common expenses.

Study this topicPSI broker outline III.A

16. A brokerage ad offers a free home warranty, but only to owners who sign a listing agreement. Where must that condition be disclosed?

Free offer with conditions · Illinois Real Estate License Act

  1. Only in paperwork handed over after the owner signs.
  2. Only if the owner asks whether there is a condition.
  3. Nowhere if the item is described as a no-charge benefit instead.
  4. In the same advertisement or offer.

Correct answer: D. In the same advertisement or offer.

Section 20-20(a)(35) prohibits offering something as free without disclosing the necessary conditions or obligations in the same ad or offer. A listing-signature requirement is a condition the consumer needs to see.

Why the other choices miss the mark

  • A. Only in paperwork handed over after the owner signs.

    That is later than the same-advertisement disclosure the statute requires.

  • B. Only if the owner asks whether there is a condition.

    The disclosure is not conditional on a consumer question.

  • C. Nowhere if the item is described as a no-charge benefit instead.

    The statute includes similar free-offer terms, not just the single word free.

Check the rule: 225 ILCS 454/20-20: grounds for discipline.

Study this topicPSI broker outline II.B

17. An investor renovates an older, previously occupied home and lists it as Like new. Assuming no other exemption, does that marketing phrase exempt the sale from the Illinois residential disclosure report?

Renovation versus new construction exemption · Disclosures

  1. Yes, because any new kitchen resets the home's occupancy history.
  2. No. Like new is not the never-occupied new-construction exemption.
  3. Yes, if the investor held title for less than a year.
  4. Yes, if the buyer agrees the finishes look new.

Correct answer: B. No. Like new is not the never-occupied new-construction exemption.

Section 15 exempts newly constructed residential property that has never been occupied. A marketing description of a renovated, previously occupied home does not establish those facts. Other exemptions must be evaluated on their actual conditions.

Why the other choices miss the mark

  • A. Yes, because any new kitchen resets the home's occupancy history.

    Renovating a component does not make the dwelling never occupied.

  • C. Yes, if the investor held title for less than a year.

    The stated new-construction exemption does not turn on that holding period.

  • D. Yes, if the buyer agrees the finishes look new.

    A buyer's opinion of the finishes does not satisfy the statutory exemption.

Check the rule: 765 ILCS 77/15: exempt transfers.

Study this topicPSI broker outline IV.D

18. A broker shows a family only neighborhoods the broker believes match the family's race, despite suitable listings elsewhere. What is the fair housing concern?

Steering · Additional Illinois Laws and Regulations

  1. It is permissible if the broker believes the family will feel comfortable.
  2. Steering that promotes racial segregation.
  3. It is permissible if the broker charges no showing fee.
  4. It becomes permissible when all selected properties meet the budget.

Correct answer: B. Steering that promotes racial segregation.

Section 20-20(a)(30) prohibits conduct intended to promote or maintain racially or religiously segregated housing. A broker should respond to the client's lawful property criteria, rather than substitute racial assumptions about where the family belongs.

Why the other choices miss the mark

  • A. It is permissible if the broker believes the family will feel comfortable.

    A claimed helpful motive does not justify racial steering.

  • C. It is permissible if the broker charges no showing fee.

    The fair housing restriction does not depend on a separate showing fee.

  • D. It becomes permissible when all selected properties meet the budget.

    Meeting a budget does not cure exclusion of other choices on racial grounds.

Check the rule: 225 ILCS 454/20-20: grounds for discipline; 775 ILCS 5/3-102: fair housing practices.

Study this topicPSI broker outline III.G

19. A broker asks parties to sign a purchase contract with the price blank, intending to fill it in after they agree by phone. What does Rule 1450.775(a) prohibit?

Blank terms at signing · Illinois Real Estate License Act

  1. Only leaving the buyer's email address blank, never the price.
  2. Accepting the signed document with the intention of filling that blank afterward.
  3. Only filling the blank in ink instead of electronically.
  4. Nothing, because a future phone call always authorizes the change.

Correct answer: B. Accepting the signed document with the intention of filling that blank afterward.

The rule prohibits soliciting, accepting, or executing a transaction document containing blanks intended to be filled after signing or initialing. It does not mean every unused space in a form is unlawful; the intended later completion is the key fact.

Why the other choices miss the mark

  • A. Only leaving the buyer's email address blank, never the price.

    The rule is not limited to contact information; the intended later completion of a term is covered.

  • C. Only filling the blank in ink instead of electronically.

    The safeguard applies to physical and electronic written agreements.

  • D. Nothing, because a future phone call always authorizes the change.

    A planned later conversation does not cure accepting the document in the prohibited manner.

Check the rule: 68 Ill. Adm. Code 1450.775: written agreements.

Study this topicPSI broker outline II.J

20. Both parties signed an electronic lease. The broker changes the rent in the file without collecting their written authority and approval of the change. Does the electronic format avoid Rule 1450.775?

Electronic corrections · Illinois Real Estate License Act

  1. Yes. The rule regulates paper documents only.
  2. Yes, if the platform retains a version history.
  3. No. The written-agreement safeguards also apply electronically.
  4. Yes, if the broker emails the altered file after the tenant moves in.

Correct answer: C. No. The written-agreement safeguards also apply electronically.

Rule 1450.775(e) covers physical and electronic agreements. Changing an electronic file requires the same applicable signatory authorization and approval as changing a paper document. Access to the editing software is not consent.

Why the other choices miss the mark

  • A. Yes. The rule regulates paper documents only.

    Subsection (e) expressly includes electronic agreements.

  • B. Yes, if the platform retains a version history.

    A version history records an edit; it does not provide the parties' required consent.

  • D. Yes, if the broker emails the altered file after the tenant moves in.

    A later email does not cure the unauthorized alteration.

Check the rule: 68 Ill. Adm. Code 1450.775: written agreements.

Study this topicPSI broker outline II.J

21. A tenant supplies reliable assistance-animal documentation that otherwise satisfies the Illinois Act. May a housing provider deny the request solely because the tenant did not use the provider's preferred form?

A provider's preferred animal form · Additional Illinois Laws and Regulations

  1. Yes. Any requested accommodation may be denied for using a different template.
  2. No. Adequate documentation cannot be rejected solely for not using that form.
  3. Yes, unless the tenant buys a registry card from the provider.
  4. Yes, if the preferred form requires a specific medical diagnosis.

Correct answer: B. No. Adequate documentation cannot be rejected solely for not using that form.

Section 10 permits a provider to supply a form, but not to deny an otherwise adequately supported request solely because that form was not used. Evaluate the documentation under the statutory requirements rather than treating a preferred template as decisive.

Why the other choices miss the mark

  • A. Yes. Any requested accommodation may be denied for using a different template.

    That is the sole-form denial the Act disallows when the documentation otherwise satisfies it.

  • C. Yes, unless the tenant buys a registry card from the provider.

    A purchased registry card is not the statutory solution to a preferred-form dispute.

  • D. Yes, if the preferred form requires a specific medical diagnosis.

    The provider may not require a specific diagnosis as a condition of the documentation.

Check the rule: 310 ILCS 120/10: assistance animals.

Study this topicPSI broker outline III.H

22. A seller completing the statutory report knows an underground fuel tank remains on the property but has no soil test. What is the sound disclosure approach?

Known underground fuel tank · Disclosures

  1. Omit the tank until a laboratory proves contamination.
  2. State that the soil is contaminated because every buried tank leaks.
  3. Disclose the known tank and avoid claiming unverified contamination or safety.
  4. State that the soil is clean because there is no test report.

Correct answer: C. Disclose the known tank and avoid claiming unverified contamination or safety.

The statutory report asks about awareness of underground fuel storage tanks. The known tank should not be omitted merely because contamination has not been established. At the same time, the seller should not invent a test result or guarantee the soil's condition.

Why the other choices miss the mark

  • A. Omit the tank until a laboratory proves contamination.

    The report asks about the tank itself; known existence is not dependent on a positive contamination test.

  • B. State that the soil is contaminated because every buried tank leaks.

    That invents a condition the facts do not establish.

  • D. State that the soil is clean because there is no test report.

    Absence of a test is not evidence of clean soil.

Check the rule: 765 ILCS 77/35: disclosure report.

Study this topicPSI broker outline IV.D

23. A person holds both an Illinois broker license and an appraiser license. When preparing a BPO in the broker role, which license number must appear on the initial page under Rule 1450.790(a)?

Broker and appraiser credentials · Illinois Real Estate License Act

  1. The broker license number.
  2. Only the appraiser license number because it is a pricing opinion.
  3. Only the sponsoring firm's federal tax number.
  4. No license number if the person holds both credentials.

Correct answer: A. The broker license number.

Rule 1450.790(a) requires the broker or managing-broker name and license number, not the appraiser license number, on the initial page of a BPO or CMA. Identify the professional role used for this report.

Why the other choices miss the mark

  • B. Only the appraiser license number because it is a pricing opinion.

    The rule requires the brokerage credential for the BPO or CMA.

  • C. Only the sponsoring firm's federal tax number.

    A tax number does not replace the author's required professional identification.

  • D. No license number if the person holds both credentials.

    Holding both credentials does not waive the identification requirement.

Check the rule: 68 Ill. Adm. Code 1450.790: BPO and CMA license identification.

Study this topicPSI broker outline II.L

24. A first-time broker receives a license 100 days before the next broker renewal deadline. Under Section 5-50(b), when must the broker complete the required 45-hour post-license education and course exams?

First license near renewal · Licensing Requirements

  1. Never; a license issued near renewal permanently waives post-license education.
  2. Within 30 days of issuance, regardless of the renewal dates.
  3. Only after the broker becomes a managing broker.
  4. Before the second broker renewal deadline after receiving the license.

Correct answer: D. Before the second broker renewal deadline after receiving the license.

A first license issued within 180 days before the next broker renewal deadline qualifies for the statutory second-renewal timing exception for post-license education. This exception concerns education timing; it should not be read as permission to ignore other renewal obligations.

Why the other choices miss the mark

  • A. Never; a license issued near renewal permanently waives post-license education.

    The exception delays the education deadline; it does not eliminate the requirement.

  • B. Within 30 days of issuance, regardless of the renewal dates.

    That fixed 30-day deadline is not the rule in Section 5-50(b).

  • C. Only after the broker becomes a managing broker.

    The post-license requirement belongs to the initial broker license, not a future managing-broker application.

Check the rule: 225 ILCS 454/5-50: renewal and post-license education.

Study this topicPSI broker outline I.G

25. A parcel falls within a Plat Act exemption, but an Illinois registered surveyor nevertheless makes a plat of it. What does Section 1(c) require about that plat?

A plat for otherwise exempt land · Additional Illinois Laws and Regulations

  1. It may never be recorded because the parcel is exempt.
  2. It must be destroyed before any deed can be signed.
  3. Only the broker's advertising brochure needs to show it.
  4. The plat must be recorded.

Correct answer: D. The plat must be recorded.

Section 1(c) says that when a registered surveyor makes a plat of a parcel otherwise exempt under subsection (b), the plat must be recorded. An exemption from having to create a subdivision plat is different from the treatment of a plat that is actually made.

Why the other choices miss the mark

  • A. It may never be recorded because the parcel is exempt.

    The statute says the opposite when the stated plat is made.

  • B. It must be destroyed before any deed can be signed.

    The Act requires recording, not destruction of the plat.

  • C. Only the broker's advertising brochure needs to show it.

    Displaying a drawing in advertising is not recording the plat.

Check the rule: 765 ILCS 205/1: subdivisions and exemptions.

Study this topicPSI broker outline III.E

26. A potential seller asks an Illinois broker for a written analysis to help choose a listing price. Assuming the report complies with Section 10-45, how should this use be classified?

CMA for a potential seller · Illinois Real Estate License Act

  1. A permitted CMA or BPO purpose.
  2. Prohibited because no listing agreement has been signed yet.
  3. Permitted only if it is renamed a certified appraisal.
  4. Prohibited because every pricing analysis requires the broker to hold an appraiser license.

Correct answer: A. A permitted CMA or BPO purpose.

Section 10-45(a) permits a BPO or CMA for an existing or potential seller. The report must meet the written-content requirements and cannot be represented as an appraisal. The mortgage-origination restriction does not ban ordinary listing-price analysis.

Why the other choices miss the mark

  • B. Prohibited because no listing agreement has been signed yet.

    The statute expressly includes potential sellers among permitted recipients.

  • C. Permitted only if it is renamed a certified appraisal.

    Renaming a CMA as an appraisal would misdescribe the service.

  • D. Prohibited because every pricing analysis requires the broker to hold an appraiser license.

    The statute permits a compliant BPO or CMA by a broker or managing broker for this purpose.

Check the rule: 225 ILCS 454/10-45: BPO and CMA requirements.

Study this topicPSI broker outline II.L

27. A seller first answered No to a report item in good faith. Before closing, new information shows that answer is incorrect. The seller says a correction would weaken the sale. What does Section 30 require?

New information before closing · Disclosures

  1. A written supplement correcting the earlier report.
  2. No correction if the original answer was made honestly.
  3. No correction unless the buyer first proves financial loss.
  4. A correction only after the deed has been delivered.

Correct answer: A. A written supplement correcting the earlier report.

The duty to supplement follows the seller's awareness before closing that the earlier report is inaccurate, incomplete, or incorrect. Concern about the sale does not excuse withholding the correction.

Why the other choices miss the mark

  • B. No correction if the original answer was made honestly.

    An honest original answer does not eliminate the later duty triggered by new information.

  • C. No correction unless the buyer first proves financial loss.

    The pre-closing supplement is not conditioned on proof of damages.

  • D. A correction only after the deed has been delivered.

    The statute requires action on the new knowledge before closing.

Check the rule: 765 ILCS 77/30: supplemental disclosure.

Study this topicPSI broker outline IV.D

28. A 2026 residential lease requires rent through a third-party portal that adds a transaction fee, including for e-checks. Under Section 3.5, what must the landlord also allow?

Fee-free way to pay rent · Additional Illinois Laws and Regulations

  1. An allowed payment method that avoids that transaction fee.
  2. Only a different portal that charges the same fee.
  3. Only a waiver after the tenant pays the fee for twelve months.
  4. No alternative when the fee is collected by the portal rather than the landlord.

Correct answer: A. An allowed payment method that avoids that transaction fee.

Section 3.5 requires an alternative such as delivering a paper check or cash, or another means that avoids the portal charge. The landlord cannot make the fee-bearing portal the tenant's only payment route for this covered agreement.

Why the other choices miss the mark

  • B. Only a different portal that charges the same fee.

    That does not provide a means to avoid the transaction fee.

  • C. Only a waiver after the tenant pays the fee for twelve months.

    The statute does not impose that waiting period before a fee-free option.

  • D. No alternative when the fee is collected by the portal rather than the landlord.

    Third-party portal charges are the express subject of the provision.

Check the rule: 765 ILCS 705/3.5: rental payment portals.

Study this topicPSI broker outline III.I

29. All required principals give the sponsoring broker matching written directions to return earnest money before closing. The broker receives the last required direction on Wednesday; Thursday is a business day. What is the ordinary deadline for this authorized disbursement?

Written release of earnest money · Illinois Real Estate License Act

  1. The broker may wait until the scheduled closing regardless of the directions.
  2. The broker must wait 30 days for objections in every case.
  3. No later than Thursday, the next business day.
  4. The broker may choose any date before license renewal.

Correct answer: C. No later than Thursday, the next business day.

Rule 1450.750(g)(6) requires disbursement according to the written directions no later than the next business day after receiving the last required direction. This question assumes the required principals agree; it is not an unresolved dispute.

Why the other choices miss the mark

  • A. The broker may wait until the scheduled closing regardless of the directions.

    The rule requires the authorized earlier disbursement within the specified time.

  • B. The broker must wait 30 days for objections in every case.

    This is agreed written direction, not a universally required 30-day notice process.

  • D. The broker may choose any date before license renewal.

    Renewal timing is unrelated to the escrow disbursement deadline.

Check the rule: 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

30. A covered Illinois seller has never tested for radon and has no known elevated-radon records. Under the Radon Awareness Act alone, what is the correct distinction?

Radon testing versus disclosure · Disclosures

  1. No test means the seller may certify that the home is radon free.
  2. Required information and disclosures still apply, but the Act does not itself require a new test or mitigation.
  3. The Act always requires the seller to install an active mitigation system before listing.
  4. No test means none of the prescribed radon materials is required.

Correct answer: B. Required information and disclosures still apply, but the Act does not itself require a new test or mitigation.

The Act separates disclosure from mandatory testing or remediation. A seller must provide the required information for a covered transaction and accurately disclose what is known. Having no test is not a reason to invent a safe result or withhold the prescribed materials.

Why the other choices miss the mark

  • A. No test means the seller may certify that the home is radon free.

    No measurement does not establish a radon-free condition.

  • C. The Act always requires the seller to install an active mitigation system before listing.

    The Act does not itself impose that universal testing or mitigation prerequisite.

  • D. No test means none of the prescribed radon materials is required.

    Lack of test records does not erase the applicable information and disclosure requirements.

Check the rule: 420 ILCS 46/10: radon disclosure.

Study this topicPSI broker outline IV.E

31. A broker deposits client earnest money into the firm's operating account so it can temporarily cover rent, intending to replace it next week. What is the central problem?

Mixing entrusted money with operating funds · Illinois Real Estate License Act

  1. There is no problem if the balance is restored before closing.
  2. Entrusted client funds are being mixed with and used as business funds.
  3. There is no problem if the broker owns the brokerage entity.
  4. The only problem is failing to earn interest for the buyer.

Correct answer: B. Entrusted client funds are being mixed with and used as business funds.

Section 20-20 prohibits commingling and failure to maintain entrusted escrow separately. An intention to replace the money does not authorize using it for operating expenses. Client money must be handled under the escrow requirements.

Why the other choices miss the mark

  • A. There is no problem if the balance is restored before closing.

    Later replacement does not cure improper mixing and use of entrusted money.

  • C. There is no problem if the broker owns the brokerage entity.

    Ownership of the business does not make client funds the broker's property.

  • D. The only problem is failing to earn interest for the buyer.

    The immediate issue is misuse and commingling of escrow, not investment return.

Check the rule: 225 ILCS 454/20-20: grounds for discipline; 68 Ill. Adm. Code 1450.750: escrow money.

Study this topicPSI broker outline II.I

32. A new Illinois home has the required passive radon-resistant construction. A broker says this replaces all applicable radon disclosure duties when the home is sold. What is wrong with that conclusion?

Construction requirement versus disclosure · Additional Illinois Laws and Regulations

  1. Nothing; a passive system automatically proves that no radon can enter.
  2. Nothing; a building contractor may waive any future disclosure for the seller.
  3. Construction requirements and applicable sale disclosures are separate.
  4. Only that the buyer must remove the passive system before signing.

Correct answer: C. Construction requirements and applicable sale disclosures are separate.

The Radon Resistant Construction Act addresses construction features. The Radon Awareness Act addresses information and disclosures for covered transactions. Installing a passive system is not, by itself, an exemption from otherwise applicable sale disclosures.

Why the other choices miss the mark

  • A. Nothing; a passive system automatically proves that no radon can enter.

    The installation does not establish that absolute factual guarantee.

  • B. Nothing; a building contractor may waive any future disclosure for the seller.

    The contractor cannot create a blanket waiver of statutory sale duties.

  • D. Only that the buyer must remove the passive system before signing.

    No such removal requirement follows from these laws.

Check the rule: 420 ILCS 52/20: passive radon construction; 420 ILCS 46/10: radon disclosure.

Study this topicPSI broker outline III.K

33. A broker gives an unlicensed assistant a lockbox code and asks the assistant to show a rental to a prospect. Does access to the property authorize the showing?

Temporary access is not a license · Licensing Requirements

  1. No. An unlicensed assistant may not show property.
  2. Yes, if the assistant avoids discussing the lease terms.
  3. Yes, because the broker's lockbox permission acts as a temporary license.
  4. Yes, if the prospect signs a waiver before the visit.

Correct answer: A. No. An unlicensed assistant may not show property.

Rule 1450.740 distinguishes administrative access tasks from licensed activity. Having keys made or obtaining entry codes can be permitted, but taking a prospect through the property as a showing is prohibited for an unlicensed assistant.

Why the other choices miss the mark

  • B. Yes, if the assistant avoids discussing the lease terms.

    The prohibition on showing property does not depend on discussing terms.

  • C. Yes, because the broker's lockbox permission acts as a temporary license.

    Access authorization is not professional licensure.

  • D. Yes, if the prospect signs a waiver before the visit.

    A prospect's waiver cannot authorize prohibited unlicensed activity.

Check the rule: 68 Ill. Adm. Code 1450.740: unlicensed assistants.

Study this topicPSI broker outline I.C

34. A nonexempt 1970 home is sold as is. Does the as-is wording eliminate the required federal lead disclosures?

Lead exemption versus an as-is sale · Disclosures

  1. No. The covered transaction still requires the lead disclosures.
  2. Yes, because as-is language is a universal federal disclosure waiver.
  3. Yes, if the buyer plans to repaint immediately.
  4. Yes, if the house is priced below its appraised value.

Correct answer: A. No. The covered transaction still requires the lead disclosures.

The federal rule applies to most pre-1978 housing, subject to its specific exemptions. An as-is contract clause alone is not one of those exemptions and does not replace the required disclosures, pamphlet, and applicable purchase inspection opportunity.

Why the other choices miss the mark

  • B. Yes, because as-is language is a universal federal disclosure waiver.

    The phrase does not provide a blanket exemption from the federal lead rule.

  • C. Yes, if the buyer plans to repaint immediately.

    The buyer's renovation plans do not remove the covered transaction's requirements.

  • D. Yes, if the house is priced below its appraised value.

    A discount is not a substitute for mandatory lead disclosure.

Check the rule: U.S. EPA: lead disclosures for sellers and lessors.

Study this topicPSI broker outline IV.E

35. An unlicensed assistant receives a buyer's question about whether an inspection clause allows cancellation. What should the assistant do?

Assistant versus licensed judgment · Illinois Real Estate License Act

  1. Interpret the clause if the assistant has seen it used before.
  2. Answer from memory if no fee is charged for the response.
  3. Tell the buyer that every inspection clause provides an unconditional cancellation right.
  4. Refer the interpretation question to the supervising licensee.

Correct answer: D. Refer the interpretation question to the supervising licensee.

An assistant may handle administrative inquiries but may not explain or interpret contracts. Passing the question to an appropriate licensee respects that boundary. The licensee should involve legal counsel when the issue requires legal advice.

Why the other choices miss the mark

  • A. Interpret the clause if the assistant has seen it used before.

    Experience with a form does not authorize an unlicensed assistant to interpret it.

  • B. Answer from memory if no fee is charged for the response.

    A separate fee is not required for the prohibited interpretation to be outside the assistant role.

  • C. Tell the buyer that every inspection clause provides an unconditional cancellation right.

    That both interprets the contract and makes an unsupported universal claim.

Check the rule: 68 Ill. Adm. Code 1450.740: unlicensed assistants.

Study this topicPSI broker outline II.G

36. A broker is owed a commission on an ordinary noncommercial residential sale and proposes recording a commission lien against the home. Which distinction matters?

Residential commission lien restriction · Additional Illinois Laws and Regulations

  1. The commercial broker lien remedy does not authorize this residential commission lien.
  2. Every unpaid brokerage fee creates the same lien on every type of property.
  3. Calling the document a notice instead of a lien always makes it lawful.
  4. The lien becomes lawful if the homeowner refuses to answer the broker's calls.

Correct answer: A. The commercial broker lien remedy does not authorize this residential commission lien.

Section 20-20(a)(47) identifies recording compensation-related liens or instruments on noncommercial residential property as a disciplinary ground. The Commercial Real Estate Broker Lien Act should not be applied to an ordinary residential commission dispute.

Why the other choices miss the mark

  • B. Every unpaid brokerage fee creates the same lien on every type of property.

    That erases the commercial limitation and the express residential disciplinary provision.

  • C. Calling the document a notice instead of a lien always makes it lawful.

    Section 20-20 also addresses compensation-related recorded written instruments, not just a title label.

  • D. The lien becomes lawful if the homeowner refuses to answer the broker's calls.

    Lack of response does not create a statutory residential commission lien.

Check the rule: 225 ILCS 454/20-20: grounds for discipline; 770 ILCS 15/10: commercial broker liens.

Study this topicPSI broker outline III.J

37. An owner received a mine subsidence insurance payment and repaired the property. The owner now signs an agreement to sell it. No disclosure waiver applies. Does the repair alone remove the mine subsidence disclosure duty?

Paid mine subsidence claim after repair · Disclosures

  1. Yes, because all paid claims disappear from disclosure duties after repair.
  2. Yes, provided the seller changes insurers before the transfer.
  3. Yes, if no broker is involved in the transfer.
  4. No. The claim paid to this owner still must be disclosed.

Correct answer: D. No. The claim paid to this owner still must be disclosed.

Section 3 concerns claims paid to the transferor. With no waiver, this owner must disclose the paid claim to the transferee and lender at the transfer agreement, as part of that written agreement. Repairs alone do not remove the duty.

Why the other choices miss the mark

  • A. Yes, because all paid claims disappear from disclosure duties after repair.

    The statute does not provide that repair-based exception to the paid-claim disclosure.

  • B. Yes, provided the seller changes insurers before the transfer.

    A change of insurer does not change the property's paid-claim history.

  • C. Yes, if no broker is involved in the transfer.

    The owner-transfer disclosure duty is not conditioned on employing a broker.

Check the rule: 765 ILCS 95/3: mine subsidence disclosure.

Study this topicPSI broker outline IV.E

38. A licensee knows a buyer has an exclusive brokerage agreement with another broker. Without that broker's specific authorization, the licensee directly negotiates a purchase with the buyer. Which provision is implicated?

Negotiating with an exclusively represented person · Illinois Real Estate License Act

  1. There is no restriction because the buyer initiated a conversation.
  2. Only a written complaint from the other broker can make the conduct improper.
  3. The restriction on direct negotiation with a person known to be exclusively represented.
  4. The restriction disappears if the new licensee charges less.

Correct answer: C. The restriction on direct negotiation with a person known to be exclusively represented.

Section 20-20(a)(33) makes this a disciplinary ground unless the other broker specifically authorizes it. Do not confuse direct transaction negotiation with a rule-permitted discussion of a possible future brokerage agreement.

Why the other choices miss the mark

  • A. There is no restriction because the buyer initiated a conversation.

    Consumer-initiated discussion of a future agreement is a different issue from the direct transaction negotiation described here.

  • B. Only a written complaint from the other broker can make the conduct improper.

    The statutory restriction is not created by the later filing of a complaint.

  • D. The restriction disappears if the new licensee charges less.

    A lower fee does not supply the required authorization.

Check the rule: 225 ILCS 454/20-20: grounds for discipline.

Study this topicPSI broker outline II.F

39. An Illinois licensee is also an attorney. The licensee acts as the buyer's broker in a sale and proposes also serving as the seller's attorney in that same transaction. How does Section 20-20(a)(34) treat this?

Attorney and broker in one transaction · Illinois Real Estate License Act

  1. It is allowed if each side pays a separate invoice.
  2. It is allowed because the attorney client is on the opposite side.
  3. It is allowed if the legal work begins after the brokerage work is finished.
  4. It is a ground for discipline.

Correct answer: D. It is a ground for discipline.

The Act bars a licensee who is also an attorney from acting as attorney for either buyer or seller in the same transaction in which the licensee acts or has acted as broker or managing broker. Holding two credentials does not permit this combination.

Why the other choices miss the mark

  • A. It is allowed if each side pays a separate invoice.

    Separate billing does not remove the same-transaction prohibition.

  • B. It is allowed because the attorney client is on the opposite side.

    The prohibition refers to acting as attorney for either buyer or seller.

  • C. It is allowed if the legal work begins after the brokerage work is finished.

    The statute also covers a transaction in which the licensee has acted as broker.

Check the rule: 225 ILCS 454/20-20: grounds for discipline.

Study this topicPSI broker outline II.K

40. An Illinois buyer brokerage agreement runs for more than one year. What duration safeguard does Rule 1450.770(c)(5) require for that longer term?

Annual termination right in a long agreement · Illinois Real Estate License Act

  1. A right to terminate annually with 30 days' prior written notice.
  2. A right to terminate only after ten years.
  3. No termination right if the compensation amount is clearly stated.
  4. A right for only the broker, never the buyer, to end the agreement.

Correct answer: A. A right to terminate annually with 30 days' prior written notice.

The rule requires the agreement's duration, including an automatic expiration date or, for a term longer than one year, the right to terminate annually with 30 days' prior written notice. A longer term is not permission to bind the buyer indefinitely without the specified exit.

Why the other choices miss the mark

  • B. A right to terminate only after ten years.

    That does not provide the required annual termination right.

  • C. No termination right if the compensation amount is clearly stated.

    Clear compensation terms do not replace the separate duration safeguard.

  • D. A right for only the broker, never the buyer, to end the agreement.

    That would omit the required termination protection in the buyer agreement.

Check the rule: 68 Ill. Adm. Code 1450.770: brokerage agreements.

Study this topicPSI broker outline II.D

Choose your next free practice session

A short sample

Twelve Illinois and national questions, with feedback after each answer.

National practice

100 questions on national principles, with a 150-minute timer.

Both portions

A 140-question session. Its state questions are the same ones in these forms.

The standard first-time broker path requires passing both portions. For format and eligibility, see the Illinois real estate exam guide. For topic work, use the study guide library.

Questions about this free state test

Is the whole 40-question Illinois practice test free?

Yes. All three forms, all 120 questions, scores, explanations, source links, and downloadable PDF review reports are free. You do not need an email address, account, app installation, or payment details. The study app is a separate option with starter access and a paid unlock.

How many questions do I need to get right on the Illinois state exam?

PSI lists 40 scored broker state questions with a 75% passing requirement, which corresponds to 30 of 40. The national portion is scored separately. This practice test uses the same percentage as a study reference, not a validated prediction of your exam result.

Is this the full Illinois real estate broker exam?

This page covers the state portion. The broker exam also has a national portion with 100 scored questions, 150 minutes, and a 70% raw passing requirement. The state portion allows 90 minutes. Managing broker, instructor, and residential leasing agent exams have different requirements.

Are these actual PSI exam questions?

No. These are original practice questions based on the published broker outline and cited authorities. They are not live or recalled PSI items. Pass Illinois is independent of PSI and IDFPR. The forms follow the published topic counts but are not calibrated to reproduce PSI difficulty.

Does the content reflect September 6, 2026?

The review uses the PSI booklet dated June 24, 2026 and cited law and guidance applicable on September 6, 2026. The source check was completed on September 7. It includes the brokerage-agreement rule effective July 13, 2026. The questions sample the broker syllabus; they do not test every subtopic or treat future-effective requirements as current law.

Can I leave the page and finish later?

When browser storage is available, each form saves its answers, flags, place, and original deadline. The timer continues while you are away and ends the attempt after 90 minutes. Submitted results are locked. Clearing storage, using another browser or device, or a question-bank update can prevent restoration. Website attempts are not synced to the study app.

Why do I sometimes see more than 40 state questions mentioned?

The published broker state portion has 40 scored questions. PSI says it may also administer 5 to 10 experimental questions during examinations. Those are unscored but still use exam time. These free forms contain exactly 40 scored practice questions and do not add experimental items.

What should I do after finishing a form?

Review missed questions and answers you guessed. Identify the rule, its deadline, and the fact that makes the other choices wrong. Study your weakest area before opening another form. A repeat score on familiar questions helps with recall but does not prove readiness. You can continue with free national practice or try the mobile or browser study app.

Sources and review notes

Source check completed September 7, 2026 for the rules applicable on September 6. The exam format comes from the June 24, 2026 PSI booklet. Legal questions cite the relevant Illinois statute or administrative rule; agency guidance supports the federal and state explanations.

The review includes the brokerage-agreement rule effective July 13, 2026. For example, a seller agreement is needed before marketing or listing, while the buyer provision uses different timing.

These are original practice questions, not official PSI items. Related guides and app questions are separate resources. This page's review date applies to the 120 questions and content here. See our editorial process. To flag a possible error, contact us with the form, question number, and source you think changes the answer.

Browse the sources cited in the answer keys

Keep the habit going

Choose one weak topic and give it a focused session tomorrow. Start free in the browser study app, or keep your next session handy on your phone.

Open the web app Get the mobile app