Illinois real estate state practice test

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. If the facts change: An unlicensed assistant may sit at a broker tour that is closed to the public. That permission does not extend to hosting a public open house.

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

Study this topicPSI broker outline II.G

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. If the facts change: If the description instead follows bearings, distances and boundary calls, it is using metes and bounds. Mentioning a block alone does not turn a plat reference into that system.

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

Study this topicPSI broker outline III.E

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. If the facts change: If the buyer is about to reveal confidential information before any offer is prepared, give the notice then. Offer preparation is the outside deadline, not permission to wait.

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

Study this topicPSI broker outline IV.A

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. If the facts change: A sponsor logo that incorporates the sponsor's name and meets the rule's size test can provide another compliance path. A symbol without the name cannot.

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

Study this topicPSI broker outline II.B

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. If the facts change: If Maya is already 18, the age requirement is met. She still needs the other qualifications and a valid registered sponsorship before practicing.

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

Study this topicPSI broker outline I.D

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. If the facts change: A statutory exemption can change the result. The Plat Act does not require a subdivision plat for every possible two-parcel split, and local requirements may also matter.

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

Study this topicPSI broker outline III.E

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. If the facts change: Oak Street Realty Group still leaves Realty without the required following word Team. Review the entire name as well as the sponsoring broker's identification.

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

Study this topicPSI broker outline II.H

Correct answer: A. Written confirmation from both clients of their prior consent to dual agency in this transaction.

Section 15-45(c) calls for written confirmation of the prior consent when the clients execute an offer or contract to purchase or lease. If the confirmation is included in the contract, each client signs the document and also initials the dual-agency confirmation provision. Advance consent alone does not complete this transaction-stage step. If the facts change: If confirmation is a separate document, the contract-initialing requirement does not turn it into a contract clause. Obtain the required written transaction-specific confirmation from each client.

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

Study this topicPSI broker outline IV.A

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. If the facts change: If the owner misses the actual installment due date, the payment may become delinquent. The prior assessment year printed on the bill does not establish lateness.

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

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. If the facts change: If the client is a seller, subsection (g) requires the written agreement before marketing or listing. The buyer-side timing language does not extend that seller deadline.

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

Study this topicPSI broker outline II.D

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. If the facts change: The rule concerns offers the agent knows or has reason to know will be considered at the same time. Working with two buyers on different properties does not, by itself, create that situation.

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

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. If the facts change: If the property has not yet been marketed or listed, the broker can enter the written seller agreement first. Telephone permission is not that agreement.

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

Study this topicPSI broker outline II.D

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. If the facts change: If the applicant has 60 approved topic hours and 15 ordinary CE hours, the total is 75 but the required applied-principles component is still 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

Correct answer: C. The licensee's Illinois licensure status, in writing to all parties.

Rule 1450.765 specifically includes LLC members and managers who buy an interest in the property. Before initiating the transaction, the licensee must disclose their licensed status in writing to all parties. Section 10-27 applies to direct and indirect interests; using an LLC does not avoid the disclosure. If the facts change: A minority LLC interest still triggers the stated status disclosure. This provision is not limited to a member who controls more than half of the company.

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

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. If the facts change: At exactly $200,000, there are 400 units and the state tax is $200.00. One additional taxable dollar creates the 401st unit and adds $0.50.

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

Study this topicPSI broker outline III.C

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. If the facts change: A brokerage agreement that omits or waives those minimum services is treated as nonexclusive under the rule, even if its heading says Exclusive.

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

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. If the facts change: If the buyer verifiably receives the report before signing, an allowed electronic method can meet the delivery requirement. Merely showing when it was sent is not the same fact.

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

Study this topicPSI broker outline IV.D

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. If the facts change: Removing the words from the ad does not make a discriminatory screening practice lawful. Evaluate applicants under lawful criteria without excluding the protected income source.

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

Study this topicPSI broker outline III.G

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. If the facts change: If Lee personally represents both clients, separate designation of other brokers does not cure Lee's dual agency. The dual-agency requirements then need attention.

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

Study this topicPSI broker outline II.A

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. If the facts change: If both clients sign informed written consent before dual representation begins, that consent requirement is met. Transaction-stage confirmation is still a separate step.

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

Study this topicPSI broker outline II.A

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

Because neither fact is apparent or known, Section 10 permits reliable written documentation of the disability and the disability-related need for the animal. It must come from someone with the required therapeutic relationship. The provider may not demand a specific diagnosis or the tenant's complete medical history. If the facts change: If both the disability and need are readily apparent or already known, the provider cannot use this provision to demand documentation of those known facts.

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

Study this topicPSI broker outline III.H

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. If the facts change: Even if the original report was accurate when delivered, learning of a relevant defect before closing can require a supplement. Do not assume supplementation automatically creates a right to cancel.

Check the rule: 765 ILCS 77/30: supplemental disclosure; 765 ILCS 77/40: conditions for termination after disclosure.

Study this topicPSI broker outline IV.D

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. If the facts change: If the seller later authorizes disclosure of that minimum price, the broker can act within that authorization. Expiration alone supplies no such permission.

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

Study this topicPSI broker outline II.A

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. If the facts change: If the new sponsorship is validly registered before Tuesday's showing, the sponsorship gap no longer prevents that showing.

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

Study this topicPSI broker outline I.D

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. If the facts change: A beneficiary's power to direct the trustee does not itself transfer legal or equitable title out of the trustee. This question concerns a conventional Illinois land trust.

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

Study this topicPSI broker outline III.A

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. If the facts change: Depositing through the sponsoring broker's properly maintained escrow account addresses this account-ownership problem. Deposit timing and recordkeeping still apply.

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

Study this topicPSI broker outline II.I

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. If the facts change: If the seller has no elevated-radon report, the prescribed information and disclosure duties still need to be addressed. The Act does not require a seller to test or mitigate before selling.

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

Study this topicPSI broker outline IV.E

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. If the facts change: If the instrument does not expressly create tenancy by the entirety, marriage and homestead use alone do not create that estate.

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

Study this topicPSI broker outline III.A

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

Tuesday is the next business day after the signed, accepted contract creates the transaction. Rule 1450.750(d) requires timely deposit into the sponsoring broker's escrow account. The broker already has the funds, and no contract term or bank closure changes this deadline. If the facts change: If the depository is closed Tuesday for a bank holiday, deposit is due on the next business day the depository is open. This question expressly rules out that delay.

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

Study this topicPSI broker outline II.I

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

Lack of known lead does not waive the disclosure package for this nonexempt pre-1978 home. Before the buyer becomes obligated, provide the approved pamphlet, required disclosure and warning, and the buyer's inspection or risk-assessment opportunity. The usual period is 10 days. The parties may agree in writing to a different period, or the buyer may waive it in writing. This disclosure rule does not require the seller to test first. If the facts change: A post-1977 construction date changes the federal target-housing analysis. This question specifies a nonexempt 1965 home, so lack of known lead is not an exemption.

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

Study this topicPSI broker outline IV.E

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. If the facts change: If every party or authorized agent later signs a release, follow that direction. The rule sets the next business day after receipt of the last required release as the outside disbursement deadline.

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

Study this topicPSI broker outline II.I

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. If the facts change: A signed fee agreement is only a foundation. The broker must also satisfy the applicable recording, notice and enforcement requirements to establish and enforce a lien.

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

Study this topicPSI broker outline III.J

Correct answer: B. She meets the national cutoff but is one correct Illinois answer short.

The national raw cutoff is 70 of 100; the Illinois cutoff is 30 of 40. Her 78 national answers reach the national cutoff, but 29 Illinois answers are one short. Combining the two scores cannot make up for the Illinois result. If the facts change: If her Illinois result is 30 of 40 with the same national result, both raw cutoffs are reached. Passing the exam alone does not authorize licensed work.

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

Study this topicPSI broker outline I.E

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. If the facts change: If both the transferee and lender sign a written waiver, its terms may change the disclosure or timing duty. An oral waiver from the buyer alone does not.

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

Study this topicPSI broker outline IV.E

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. If the facts change: A BPO requested by a seller to help choose an asking price is a permitted purpose under Section 10-45, subject to the report's other requirements.

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

Study this topicPSI broker outline II.L

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. If the facts change: Section 15 does not apply statewide. A property outside a county with more than three million residents must be assessed under any other applicable law or lease term.

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

Study this topicPSI broker outline III.I

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. If the facts change: The lower-level rule can also reach flooding elsewhere on the real property containing the unit. Being outside the mapped floodplain does not remove this separate ten-year inquiry.

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

Study this topicPSI broker outline IV.E

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. If the facts change: Section 10-5 contains a limited exception for payment under a former employment agreement for work performed while previously sponsored. The seller's direct-payment offer is not that exception.

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

Study this topicPSI broker outline II.E

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. If the facts change: Two proved violations can expose the licensee to separate fines. The $25,000 figure is a ceiling for each violation, not an automatic fine or a combined case limit.

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

Study this topicPSI broker outline II.K

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. If the facts change: If every signatory gives the required written direction and signs or initials the change, the corrected document may be processed. Give the signatories a true corrected copy within 24 hours.

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

Study this topicPSI broker outline II.J

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. If the facts change: Permission alone does not complete the advertising requirement. The sponsoring broker with the exclusive listing must also be identified.

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

Study this topicPSI broker outline II.B

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. If the facts change: Replacing an ad with neutral wording does not make discriminatory applicant screening lawful. The selection process also has to comply with fair housing law.

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

Study this topicPSI broker outline III.G

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. If the facts change: If the buyer has not paid a retainer, the deadline is unchanged. Beginning designated-agent work, rather than collecting money, triggers this notice.

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

Study this topicPSI broker outline IV.A

Correct answer: D. Remove the outdated listing advertising within a reasonable time, considering control over the ad and ease of removal.

Rule 1450.715(a)(3) requires removal within a reasonable time after closing or the listing agreement ends, whichever occurs first. The nature of the ad, control over removal, ease of removal and knowledge that it is still running all matter. The rule does not give every ad the same fixed number of days. If the facts change: If the listing expires before a sale closes, expiry starts the reasonable-time removal analysis. Closing is not the only trigger.

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

Study this topicPSI broker outline II.B

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. If the facts change: Being paid with a gift card rather than a rent discount would still involve valuable consideration. Changing the payment label does not remove the licensing concern.

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

Study this topicPSI broker outline I.A

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

Section 10(f) bars a pet-related fee, deposit or assessment for an assistance animal. It allows repair costs for animal damage to the dwelling or common areas, excluding reasonable wear and tear, on the same basis as damage caused by other residents. The accommodation does not require disclosure of a specific diagnosis. If the facts change: If the animal causes damage beyond reasonable wear and tear, permitted repair charges remain possible. Calling an upfront pet fee a damage charge does not make it permissible.

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

Study this topicPSI broker outline III.H

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. If the facts change: The separate broker-advertising provision in Section 10-30(c)(1) treats a broker's yard sign differently. Do not apply this By Owner wording requirement to every form of licensee-owned listing.

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

Study this topicPSI broker outline II.B

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. If the facts change: If no confidential discussion happens first, preparation of an offer is still the outside deadline for written no-agency notice. It cannot be postponed to acceptance.

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

Study this topicPSI broker outline IV.A

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. If the facts change: With the same tax rate and exemptions, a lower taxable assessed value lowers the calculated tax. A prediction about the actual bill still needs the other inputs.

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

Correct answer: C. Property is a listed misleading term unless followed by Team.

The rule lists property among terms considered inherently misleading unless followed by the word Team. Sponsor approval does not override that requirement. The whole advertisement must also identify the sponsoring brokerage appropriately. If the facts change: Adding Team after Partners still leaves Property without the required following word. Sponsor approval alone does not cure the proposed name.

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

Study this topicPSI broker outline II.H

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. If the facts change: A buyer paying the brokerage directly also does not, by payment alone, establish agency. Examine the relationship and the required agreements and disclosures.

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

Study this topicPSI broker outline IV.C

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. If the facts change: A genuine dispute between the transaction parties over entitlement to the deposit raises the separate disputed-escrow rules. This question states that release is already authorized.

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

Study this topicPSI broker outline II.I

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. If the facts change: A referral for a residential rental fits the stated license category. The other referral-fee and sponsorship requirements still apply.

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

Study this topicPSI broker outline I.C

Correct answer: C. Keep the price confidential unless the seller permits its disclosure.

Section 15-45(a) distinguishes consent to dual representation from permission to disclose a client's confidential information. The seller's undisclosed minimum price is not available to the buyer merely because both signed a dual-agency consent. Obtain the seller's permission before disclosing it. If the facts change: If the seller later permits disclosure of that price, the broker may disclose within that permission. The dual-agency consent itself is not that authorization.

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

Study this topicPSI broker outline IV.A

Correct answer: C. $200.

Section 31-10 excludes the mortgage still outstanding when the transferring document states that the property transfers subject to it. Taxable value is $300,000 - $100,000 = $200,000. At $0.50 per $500 or fraction, 400 units cost $200. This is the state tax only. If the facts change: If the $100,000 mortgage is paid off at closing instead, this outstanding-mortgage deduction is unavailable. With the same $300,000 taxable value and no other deduction, state tax would be $300.

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

Study this topicPSI broker outline III.C

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. If the facts change: Using a different payment platform does not change the result while the licensee is still acting as escrow agent. Check compliance rather than relying on the vendor's assurances.

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

Study this topicPSI broker outline II.I

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. If the facts change: Two offers on different homes do not meet this rule's same-parcel or same-unit definition. The agent must still protect each client's confidential information.

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

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. If the facts change: At a 3% declaration share with the same $100,000 expenses and assumptions, the unit's share would be $3,000. Occupant count is not the stated allocation basis.

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

Study this topicPSI broker outline III.A

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. If the facts change: A flat administrative wage unrelated to closings removes this transaction-based-pay problem. The assistant's duties must still stay within the unlicensed role.

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

Study this topicPSI broker outline II.G

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. If the facts change: If a lender wants the report as the primary basis for a mortgage-origination market value, Section 10-45(a)(4) does not permit that use. A disclaimer cannot cure an impermissible purpose.

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

Study this topicPSI broker outline II.L

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

Section 1c requires both tenants' signatures for an effective lease of homestead property held in tenancy by the entirety. One spouse's signature in their own capacity does not supply the other's. The question rules out anyone signing on the other spouse's behalf. If the facts change: If both tenants sign the lease, this missing-signature problem is resolved. That alone does not establish that every other lease requirement has been met.

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

Study this topicPSI broker outline III.A

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. If the facts change: If the seller already knows of a material defect behind the wall, the duty to disclose that knowledge applies. Not opening the wall is no excuse to withhold a known defect.

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

Study this topicPSI broker outline IV.D

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. If the facts change: If the broker initiates the contact, the consumer-initiated exception no longer applies. The rule has a separate route with written requests and other conditions; it is not unrestricted solicitation.

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

Study this topicPSI broker outline II.D

Correct answer: C. The high-school credential and 75-hour prelicense education requirements are waived; the other broker application requirements remain.

Section 5-27(b) exempts this applicant from the high-school credential and 75-hour prelicense education requirements. It does not waive the broker exam, application or applicable fees. This question concerns applying for a broker license, rather than an attorney acting within a separate statutory exemption for legal work. If the facts change: An applicant whose Illinois law license is no longer in active standing cannot rely on this exemption merely because they once practiced law.

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

Study this topicPSI broker outline I.D

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. If the facts change: If the division adds a new access easement, the facts no longer fit this particular exemption. Review the other provisions before deciding whether a plat is required.

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

Study this topicPSI broker outline III.E

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. If the facts change: Communicating relocation benefits without advising or encouraging termination or amendment is treated differently under subsection (b)(5). The coaching in this question crosses that line.

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

Study this topicPSI broker outline II.F

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. If the facts change: An as-is sale can still be subject to the Act. An as-is term does not turn the report into a warranty or automatically excuse required disclosure.

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

Study this topicPSI broker outline IV.D

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

Section 4(b) prohibits a landlord from requiring electronic funds transfer for amounts due under the residential agreements it covers. Subsection (d) applies the rule to agreements executed after January 1, 2024, which includes this 2026 lease. The tenant may choose an offered electronic option; the landlord cannot make it mandatory. If the facts change: A tenant voluntarily choosing recurring electronic payment is different from a lease that requires it. Signing a mandatory-payment clause does not remove the statutory restriction.

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

Study this topicPSI broker outline III.I

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. If the facts change: Changing only the date the commission is payable also requires a signed written amendment. The rule covers payment timing as well as the amount.

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

Study this topicPSI broker outline II.D

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

Section 15(9) exempts a transfer of newly constructed residential real property that has never been occupied. It expressly excludes rehabilitation of existing residential property from that category. The exemption is from this Act; other applicable disclosure and construction duties still need attention. If the facts change: Rehabilitating an existing home does not qualify it for this new-construction exemption. A seller must check whether a different exemption applies.

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

Study this topicPSI broker outline IV.D

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. If the facts change: An incentive offered to a person who is actually a party to the transaction is a different statutory category. It must still comply with applicable law, including RESPA where relevant.

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

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. If the facts change: A later radon measurement can still show an elevated level. Passive construction is a required preventive feature, rather than a guarantee about every future test.

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

Study this topicPSI broker outline III.K

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

Section 5-50(b) requires 45 post-license hours in three 15-hour courses, each with a 50-question provider final exam. Because this first license was issued more than 180 days before renewal, the courses are due before that first renewal. The within-180-days exception instead allows completion by the second renewal. If the facts change: If the first license is issued within 180 days before the next renewal deadline, Section 5-50(b) allows the post-license work by the second renewal.

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

Study this topicPSI broker outline I.G

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. If the facts change: Being outside a mapped floodplain does not eliminate the separate lower-level disclosure of known flooding to the unit or the property within the preceding ten years.

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

Study this topicPSI broker outline IV.E

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. If the facts change: Once a valid sponsorship is registered, that registration gap is resolved. The signed employment agreement is still a separate requirement.

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

Study this topicPSI broker outline II.C

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. If the facts change: Being named in the signed instrument does not by itself establish an enforceable lien. The applicable fee entitlement, recording and notice requirements still matter.

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

Study this topicPSI broker outline III.J

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. If the facts change: A buyer's written waiver of the inspection opportunity does not waive the required lead pamphlet, disclosures and warning for covered housing.

Check the rule: U.S. EPA: lead disclosures for sellers and lessors; 40 CFR 745.110: inspection opportunity and written waiver.

Study this topicPSI broker outline IV.E

Correct answer: C. By 3 p.m. Wednesday, 24 hours after signing.

A true copy is due by 3 p.m. Wednesday. Rule 1450.775(c) measures 24 hours from the person's signing or initialing of the original or corrected document. It does not allow three business days or let the broker wait until closing. If the facts change: A later correction that the buyer initials starts its own 24-hour copy deadline. Deliver the true corrected document, rather than relying on a copy of the earlier version.

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

Study this topicPSI broker outline II.J

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

Section 15-15(a)(2)(E) requires obedience to specific client directions only when they are lawful. Subsection (a)(5) also requires compliance with fair housing and civil rights laws. A client's insistence, signature or promise to take responsibility does not authorize discrimination. If the facts change: Putting the instruction in writing does not make it lawful. A discriminatory clause in the listing agreement also conflicts with the fair housing rules.

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

Study this topicPSI broker outline II.A

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. If the facts change: A licensed broker's client can still lose money on a transaction. Licensing standards do not insure investment performance.

Check the rule: 225 ILCS 454/1-5: public protection.

Study this topicPSI broker outline II.N

Correct answer: C. It protects a licensee from a failure-to-disclose claim for that specified nonphysical history.

Section 15-20(ii) protects a licensee from a failure-to-disclose claim for an event with no effect on the property's physical condition, structures or environment. This protection concerns nondisclosure of the stated history. It does not authorize hiding a known physical defect or making a false statement. If the facts change: If the event caused a known physical defect, the facts no longer fit this particular protection. Evaluate the physical condition under the applicable disclosure duties.

Check the rule: 225 ILCS 454/15-20: nonphysical property history.

Study this topicPSI broker outline II.A

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. If the facts change: At exactly $250,000, there are 500 units and state tax is $250. One more taxable dollar adds a unit and $0.50.

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

Study this topicPSI broker outline III.C

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. If the facts change: Increasing the interest above 1% does not create the duty for the first time. LLC membership already triggers this status disclosure in the stated transaction.

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

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. If the facts change: A competing offer that pays the broker less still has to be presented when the presentation duty applies. The broker's preferred compensation does not decide which offers the seller sees.

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

Study this topicPSI broker outline II.A

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. If the facts change: At 23 months after satisfactory completion, this two-year period has not yet elapsed. The candidate still needs to satisfy the other scheduling requirements.

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

Study this topicPSI broker outline I.E

Correct answer: C. $114,000.

Equalized assessed value is assessed value multiplied by the applicable equalization factor: $120,000 x 0.95 = $114,000. This is the value before exemptions in the stated exercise. Do not treat it as the property's sale price or the amount of tax owed. If the facts change: With a factor of 1.05 instead, the same $120,000 assessed value produces $126,000 before exemptions. Multiply by the supplied factor rather than applying a memorized reduction.

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

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. If the facts change: Calling the agreement nonexclusive does not remove the compensation-content requirement. Subsection (c) covers both exclusive and nonexclusive buyer or tenant agreements.

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

Study this topicPSI broker outline II.D

Correct answer: B. The beneficial interest still requires written licensee-status disclosure.

Rule 1450.765(b) expressly includes a licensee's beneficial interest in a land trust that sells, leases or buys the subject real estate. The licensee must disclose their licensed status in writing to all transaction parties before initiation. Having the trustee named on the deed does not remove that duty. If the facts change: Waiting until sale proceeds reach the beneficiary misses the pre-initiation timing. The required disclosure concerns licensed status, rather than only the name shown on the deed.

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

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. If the facts change: A small beneficial percentage is still a beneficial interest. Its size does not turn it into the trustee's legal or equitable title to the real estate.

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

Study this topicPSI broker outline III.A

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. If the facts change: The rule permits identification by address, legal description or both. A neighborhood nickname alone is not the listed method of identifying the real property.

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

Study this topicPSI broker outline II.D

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. If the facts change: Waiving the commission does not remove the ownership-based prohibition. The rule addresses any direct or indirect ownership interest in the entity that is a party.

Check the rule: 68 Ill. Adm. Code 1450.820: dual agency.

Study this topicPSI broker outline IV.A

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. If the facts change: An agreement that includes the minimum services still needs the other elements of an exclusive brokerage agreement. Including those services alone does not establish exclusivity.

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

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. If the facts change: After an earlier failed attempt, a candidate still within eligibility ordinarily repeats only the failed portion. The fourth-failure rule requires the stated education and exam reset.

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

Study this topicPSI broker outline I.E

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. If the facts change: If the buyer later permits disclosure of that maximum, the broker may disclose within that permission. Consent to dual agency alone is not permission to share the price.

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

Study this topicPSI broker outline IV.A

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. If the facts change: Special statutory allocations can alter particular expenses. Check those provisions before applying the ordinary percentage rule to every charge.

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

Study this topicPSI broker outline III.A

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. If the facts change: Calling the warranty a no-charge benefit does not avoid the rule. The necessary condition still belongs in the same advertisement or offer.

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

Study this topicPSI broker outline II.B

Correct answer: B. No. Like new is not the never-occupied new-construction exemption.

Section 15(9) exempts newly constructed residential property that has never been occupied and expressly excludes rehabilitation of existing residential property. A renovated, previously occupied home does not qualify merely because its listing says Like new. The question rules out other exemptions. If the facts change: Never-occupied new construction is the separate category named in the exemption. New finishes in an existing home do not establish those facts.

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

Study this topicPSI broker outline IV.D

Correct answer: B. Steering that promotes racial segregation.

Section 20-20(a)(30) prohibits conduct that promotes or tends to promote racially segregated housing. Selecting neighborhoods for a client on racial assumptions is steering. Use the client's lawful property criteria and make suitable choices available without substituting assumptions about where the family belongs. If the facts change: A family's budget or commute preferences are lawful search criteria. The broker should use those criteria without limiting choices by race.

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

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. If the facts change: An unused field that is not intended to be completed after signing is different. The rule does not declare every empty space on a form unlawful.

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

Study this topicPSI broker outline II.J

Correct answer: C. No. The written-agreement safeguards also apply electronically.

Rule 1450.775(b) requires written consent or direction from all signatories for an alteration. The change must also be signed or initialed by all signatories when made before the licensee processes the altered document. Subsection (e) applies these safeguards to electronic agreements. An editing account or version history supplies neither consent nor approval. If the facts change: A true corrected copy is also due within 24 hours after the person signs or initials the correction. Keeping the edit history alone does not deliver that copy.

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

Study this topicPSI broker outline II.J

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. If the facts change: If the submitted documentation does not meet the statutory requirements, the provider may request permitted supporting information. This question says the documentation is adequate.

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

Study this topicPSI broker outline III.H

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. If the facts change: A later test showing contamination supplies additional information to evaluate and disclose as required. Lack of a test does not justify either omitting the tank or claiming the soil is safe.

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

Study this topicPSI broker outline IV.D

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. If the facts change: For a CMA prepared in the same brokerage role, the rule uses the same initial-page credential requirement. Holding an appraiser license does not change the report's role.

Check the rule: 68 Ill. Adm. Code 1450.790: BPO and CMA license identification.

Study this topicPSI broker outline II.L

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. If the facts change: If the first license arrives more than 180 days before the next renewal deadline, this exception does not apply. The courses and exams are then due before the first renewal.

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

Study this topicPSI broker outline I.G

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. If the facts change: If no plat is made, subsection (c) does not itself command creation of one. Check the other Plat Act provisions and local requirements before deciding what is needed.

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

Study this topicPSI broker outline III.E

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. If the facts change: Using the report as the primary mortgage-origination market-value basis is a different purpose. Section 10-45(a)(4) excludes that use; a listing-price purpose does not authorize it.

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

Study this topicPSI broker outline II.L

Correct answer: A. Deliver a written supplement correcting the earlier report.

Section 30 requires a written supplemental disclosure when, before closing, the seller becomes aware of an error, inaccuracy or omission in a report already delivered to the buyer. Deliver the correction by a method allowed in Section 50. An honest original answer or concern about losing the sale does not remove this later duty. If the facts change: A supplement does not automatically give every buyer a cancellation right. Section 40 sets conditions for termination after supplemental disclosure.

Check the rule: 765 ILCS 77/30: supplemental disclosure; 765 ILCS 77/50: delivery methods; 765 ILCS 77/40: conditions for termination.

Study this topicPSI broker outline IV.D

Correct answer: A. An allowed payment method that avoids that transaction fee.

Section 3.5 requires a way to avoid the third-party portal's transaction charge, such as delivering a paper check or cash to the landlord or business office, or another method without that charge. The rule applies to agreements executed after January 1, 2025, so this 2026 lease is covered. If the facts change: A second portal with the same charge does not solve the fee problem. The tenant must have an allowed way to pay without that transaction charge.

Check the rule: 765 ILCS 705/3.5: rental payment portals.

Study this topicPSI broker outline III.I

Correct answer: C. No later than Thursday, the next business day.

Thursday is the next business day after the broker receives the last required written direction. Rule 1450.750(g)(6) sets that outside deadline for this authorized pre-closing disbursement. The question establishes cleared funds and agreement by all required principals, so there is no unresolved release dispute. If the facts change: If Thursday is not a business day, use the next business day for the outside deadline. A commission claim does not justify withholding an otherwise authorized payment.

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

Study this topicPSI broker outline II.I

Correct answer: B. Required information and disclosures still apply, but the Act does not itself require a new test or mitigation.

For a covered sale, Section 10 requires the approved radon pamphlet and prescribed disclosure before the buyer is obligated. It does not itself require the seller to test or mitigate. Without a test, the seller cannot certify a radon-free result and must still give the required materials. If the facts change: If the seller possesses records showing elevated radon, the prescribed disclosure requires that information. No general duty to commission a new test excuses withholding existing results.

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

Study this topicPSI broker outline IV.E

Correct answer: B. Entrusted client funds are being mixed with and used as business funds.

Section 20-20(a)(17) requires entrusted escrow money to remain separate from personal and other business funds. Subsection (a)(22) also addresses commingling. Depositing earnest money into the operating account and using it for rent violates those duties. A plan to replace it next week does not authorize the use. If the facts change: Restoring the balance before closing does not undo the earlier mixing and use. Keep entrusted funds separate throughout the required holding period.

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

Correct answer: C. Construction requirements and applicable sale disclosures are separate.

Section 20 of the Radon Resistant Construction Act addresses construction features. Section 10 of the Radon Awareness Act separately requires information and disclosures for covered sales. Passive features do not replace those duties. The question expressly establishes that the sale is covered. If the facts change: The presence of passive features does not prove a safe radon measurement. Construction compliance and what a test shows are different facts.

Check the rule: 420 ILCS 52/20: passive radon construction; 420 ILCS 46/10: radon disclosure.

Study this topicPSI broker outline III.K

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. If the facts change: Having a key made or obtaining an entry code is an allowed administrative task under the rule. Taking a prospect through the property remains a prohibited showing for this assistant.

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

Study this topicPSI broker outline I.C

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. If the facts change: A written waiver of the buyer's lead inspection opportunity does not waive the separate required disclosure package. An as-is clause is not that waiver either.

Check the rule: U.S. EPA: lead disclosures for sellers and lessors; 40 CFR 745.110: inspection opportunity and written waiver.

Study this topicPSI broker outline IV.E

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. If the facts change: An assistant may quote directly from published information under the rule. Interpreting whether a clause gives this buyer a cancellation right is different.

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

Study this topicPSI broker outline II.G

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. If the facts change: A qualifying commercial transaction has a different statutory lien framework. An unpaid fee alone does not establish the Commercial Broker Lien Act's conditions either.

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

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. If the facts change: A waiver of disclosure or its timing must be in writing and signed by both transferee and lender under Section 3(c). The seller's repair invoice alone is no waiver.

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

Study this topicPSI broker outline IV.E

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. If the facts change: Discussing a possible future brokerage agreement under Rule 1450.770 is a separate issue. A permitted future-agreement discussion does not itself authorize direct purchase negotiation.

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

Study this topicPSI broker outline II.F

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. If the facts change: Waiting until the brokerage work ends does not cure the same-transaction problem. The statute also reaches a transaction in which the licensee has already acted as broker.

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

Study this topicPSI broker outline II.K

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. If the facts change: A shorter agreement still needs a stated duration and the applicable expiration term. The longer-term annual exit is not a substitute for every other agreement requirement.

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

Study this topicPSI broker outline II.D