Illinois broker exam practice

Illinois brokerage agreements practice questions

Try ten original scenarios on writing, timing, required terms, minimum services and what happens when an agreement changes or ends. Choose an answer before opening the explanation, then test the rule again with one fact changed.

Last reviewed: October 23, 2026

What should you look for in these questions?

Start with the consumer's role and the activity. Illinois requires brokerage agreements to be written. Seller or owner agreements are due before marketing or listing. Ordinary buyer or tenant agreements follow the licensed-assistance trigger in rule 1450.770(h). Exclusive agreements also need the statutory minimum services.

Next check the document, duration and property facts. A purchase-contract clause cannot replace a signed brokerage-fee amendment, and the residential protection-period exception has specific conditions. The questions below separate those decisions.

Brokerage Agreements is Illinois outline II.D. The entire License Act area has 16 of 40 scored state questions, or 40%. PSI does not give this subtopic its own question quota. This ten-question set is practice, not an official exam form or readiness certificate.

Questions 1-5: timing, terms and exclusivity

Write down your choice and the fact that makes it correct. Open the answer only after deciding.

Question 1 of 10 · Seller timing

A seller approves a fee by phone. Before the written brokerage agreement is executed, the licensee plans to post a coming-soon video and put the home in a private listing network. What should happen?

Start the private-network listing, but wait to post the public video.
Execute the written seller agreement before either marketing step.
Start both steps if the agreement is signed before the first offer.
Use the seller's oral fee approval until an in-person showing is scheduled.

Show answer and explanations

Answer: B. Execute the written seller agreement before either marketing step.

Why this misses: The seller rule covers marketing or listing. A private network does not remove the need for the prior written agreement.
Correct. Both steps market or list the owner's property. The seller or owner agreement must come first.
Why this misses: The trigger is marketing or listing, not receipt of an offer.
Why this misses: Fee approval by phone does not satisfy the written-agreement requirement or postpone the marketing trigger.

Change the facts: If the licensee is only presenting brokerage services to seek the listing, and has not begun marketing or listing the property, do not confuse that presentation with the marketing in this question.

Source: 1450.770(g)

Question 2 of 10 · Buyer timing

For ordinary buyer representation, which statement accurately describes Illinois rule 1450.770(h), considered separately from any stricter applicable firm or membership policy?

The agreement is due only when the buyer selects a property to purchase.
An oral promise is enough until the buyer asks the broker to prepare an offer.
The rule gives every licensee a fixed 24-hour period after the first showing.
Obtain it before licensed assistance, or as soon as reasonably practical after performing that assistance.

Show answer and explanations

Answer: D. Obtain it before licensed assistance, or as soon as reasonably practical after performing that assistance.

Why this misses: Licensed activities intended to assist the purchase can begin before a property is selected.
Why this misses: The rule calls for a written agreement and does not use offer preparation as its general trigger.
Why this misses: It does not create a universal 24-hour grace period.
Correct. This follows the current buyer or tenant trigger. Reasonably practical is tied to the circumstances, not an unlimited delay or a fixed number of hours.

Change the facts: If the consumer is a seller or owner, use subsection (g): the agreement is due before marketing or listing. Do not transfer the ordinary buyer-side wording to seller marketing.

Source: 1450.770(h)

Question 3 of 10 · Required listing terms

A proposed listing identifies the property, owner, sponsoring broker and designated agent. It includes signatures, duties, compensation, payment timing, any cooperating-broker amounts and compliant duration terms. The owner says the price can be decided later. What required listing term is still missing?

The list price.
The buyer's eventual loan interest rate.
A promise that the owner will receive an offer above list price.
A protection period of a specified minimum length.

Show answer and explanations

Answer: A. The list price.

Correct. The listing requirements expressly include list price. Property identification and compensation terms do not replace it.
Why this misses: That is not one of the listing-agreement terms specified by subsection (d).
Why this misses: The rule requires the list price, not a guaranteed result.
Why this misses: The cited rule does not require every listing to have a protection period or prescribe a universal minimum length.

Change the facts: For a buyer or tenant agreement, check subsection (c)'s own required terms. Do not import a seller's list-price field into that list as a universal buyer-agreement requirement.

Source: 1450.770(d)(1)-(7)

Question 4 of 10 · Exclusive minimum services

A listing is labeled exclusive. It says the firm will present offers but waives assistance with counteroffers, related notices and contingencies. The seller signs the waiver. How does the current rule classify the agreement?

Exclusive, because the seller consented to a reduced service package.
Automatically void solely because the minimum-service language was waived.
Nonexclusive because a required minimum service was waived.
Exclusive until an actual counteroffer arrives, then nonexclusive.

Show answer and explanations

Answer: C. Nonexclusive because a required minimum service was waived.

Why this misses: Client consent does not preserve exclusive classification when a statutory minimum service is waived.
Why this misses: Subsection (b)(2) specifies nonexclusive treatment for this defect. Do not replace that stated consequence with automatic voidness; other defects can raise separate issues.
Correct. Omitting or waiving the Section 15-75 services results in nonexclusive treatment, regardless of the heading.
Why this misses: The defect is in the agreement's service language. It does not wait for a later counteroffer.

Change the facts: Removing the waiver and including all minimum services fixes this particular defect. You must still check the agreement's actual exclusive terms and other legal requirements.

Source: 1450.770(b)(1)-(2); Act 15-75

Question 5 of 10 · Expiration and annual termination

A two-year buyer agreement has a definite automatic expiration date. It also says the buyer cannot terminate annually, even with advance written notice. Which correction is needed under the current Act?

Delete the expiration date and allow termination whenever the office approves.
Keep definite expiration and provide annual termination with no more than 30 days' prior written notice.
Keep the agreement unchanged because a fixed ending date is sufficient for any term.
Allow annual termination only on at least 60 days' prior written notice.

Show answer and explanations

Answer: B. Keep definite expiration and provide annual termination with no more than 30 days' prior written notice.

Why this misses: The Act requires definite automatic expiration. Discretionary office approval is not the required annual client right.
Correct. For a term longer than one year, the current statute requires both definite expiration and that annual termination right.
Why this misses: That overlooks the additional statutory right for agreements longer than one year.
Why this misses: Requiring at least 60 days conflicts with the statutory maximum of 30 days' prior written notice.

Change the facts: If the agreement instead lasts six months, it still needs definite automatic expiration. The extra annual termination condition in Section 10-25 is triggered by a term longer than one year.

Source: 225 ILCS 454/10-25

Questions 6-10: amendments, protection and representation

Question 6 of 10 · Commission changes

A buyer and sponsoring broker agreed to a flat brokerage fee. Later, a purchase-contract addendum signed by buyer and seller states a higher brokerage fee. There is no signed amendment to the brokerage agreement. Does this use the permitted method to change the agreed fee?

Yes, because the purchase addendum was signed later.
Yes, because the seller also signed the purchase addendum.
Yes, if the higher fee is printed conspicuously in the purchase addendum.
No. Use a written brokerage-agreement amendment signed by its parties.

Show answer and explanations

Answer: D. No. Use a written brokerage-agreement amendment signed by its parties.

Why this misses: Being later in time does not overcome the prohibition on using real estate contract forms to change previously agreed commission-payment terms.
Why this misses: The seller's signature does not substitute for an amendment signed by the brokerage-agreement parties.
Why this misses: Prominent type does not cure use of the wrong document to change the agreed commission terms.
Correct. Amount or payment-time changes require a signed written amendment. A real estate contract form cannot be used as the substitute.

Change the facts: If the buyer and sponsoring broker instead sign a proper written amendment to their brokerage agreement, that uses the required amendment method. It does not authorize a unilateral increase or settle unrelated fee disputes.

Source: 1450.770(j)-(k)

Question 7 of 10 · Protection periods

An expired listing for a residential four-unit building has a protection period. During that period, the owner enters a valid written listing with another sponsoring broker. The first firm seeks a fee under its protection clause after the property sells. What provision must the first agreement contain?

The first firm's fee remains payable whenever it introduced the eventual buyer.
The owner must wait until the protection period ends before signing with another sponsor.
No fee is due under the first agreement when the stated valid new-agreement condition occurs.
The exception applies only to a single-family home, so the four-unit building is excluded.

Show answer and explanations

Answer: C. No fee is due under the first agreement when the stated valid new-agreement condition occurs.

Why this misses: This ignores the required residential new-agreement protection. Introduction alone does not override subsection (n)'s stated condition.
Why this misses: The rule expressly addresses a valid new agreement made during the protection period; it does not impose that blanket waiting period.
Correct. For residential property of four units or fewer, a protection clause must include this exception for a valid written agreement with another sponsoring broker during the period.
Why this misses: Four units is within the rule's residential scope of four units or fewer.

Change the facts: Change only the property to five residential units. This specific four-or-fewer-unit exception no longer supplies the answer. Review the agreement and other applicable law; that change does not automatically prove a fee was earned.

Source: 1450.770(n)

Question 8 of 10 · Whose client is it?

A licensee has an executed written seller agreement. An unrepresented buyer wants to deal with that licensee about the listed property while remaining unrepresented. Which approach fits subsection (i)(1)?

Give written disclosure that the licensee is not the buyer's agent, then act on behalf of the seller with that buyer.
Treat the buyer as a represented client because the licensee has a seller agreement.
Obtain a buyer agreement naming the same individual as the buyer's representative while calling the buyer unrepresented.
Proceed with only an oral explanation until the buyer makes an offer.

Show answer and explanations

Answer: A. Give written disclosure that the licensee is not the buyer's agent, then act on behalf of the seller with that buyer.

Correct. Subsection (i)(1) permits this seller-side activity with an unrepresented buyer after the written non-agency disclosure.
Why this misses: A seller agreement does not itself make the buyer that licensee's client.
Why this misses: That changes the proposed role. Representation of both sides requires the separate dual-agency requirements, not just a label.
Why this misses: Subsection (i)(1) requires written disclosure before the specified activity with the unrepresented buyer.

Change the facts: If the same individual will instead act for both clients, subsection (i)(2) requires a buyer agreement and compliance with Section 15-45 before licensed activities on the buyer's behalf. Present the dual-agency disclosure when entering the brokerage agreement and obtain informed written consent from all clients before acting as a dual agent. Section 15-45(c) also requires written confirmation of prior consent for the transaction, addressed below.

Source: 1450.770(i)(1)-(2)

Question 9 of 10 · Written does not mean exclusive

A consumer asks a sponsoring broker for nonexclusive representation because the consumer may also work with another firm. They propose keeping their brokerage arrangement entirely oral. Which statement is correct?

Oral terms are permitted because the representation is nonexclusive.
The arrangement must become exclusive before it can be put in writing.
A buyer-seller purchase contract will supply the required brokerage agreement later.
Use a written nonexclusive brokerage agreement with the required terms.

Show answer and explanations

Answer: D. Use a written nonexclusive brokerage agreement with the required terms.

Why this misses: The current definition requires all brokerage agreements to be written; the requirement is not limited to exclusive agreements.
Why this misses: The Act permits written nonexclusive agreements. Writing and exclusivity are separate questions.
Why this misses: The transaction contract does not replace the sponsoring broker's representation agreement with the consumer.
Correct. The sponsoring broker and consumer can choose a nonexclusive arrangement, but must still satisfy the writing and agreement requirements.

Change the facts: If they choose exclusive representation instead, writing is still required and the exclusive minimum-service rules also matter. The word exclusive changes the representation rights, not whether writing is required.

Source: 225 ILCS 454/1-10; 15-50(a)

Question 10 of 10 · After termination

A brokerage agreement expires. The firm still holds transaction money and confidential information received during the relationship. The agreement adds no further post-termination services. What continues under Section 15-30?

Only confidentiality; accounting ends when representation ends.
Accounting for transaction money and property, and protection of confidential information.
Only accounting; the firm may now share confidential bargaining information with other buyers.
All prior marketing and negotiation duties continue until the firm is paid.

Show answer and explanations

Answer: B. Accounting for transaction money and property, and protection of confidential information.

Why this misses: Accounting for transaction money and property is also a surviving duty.
Correct. These are the two statutory surviving duties. Expiration alone does not erase them.
Why this misses: Expiration alone does not remove the confidentiality duty.
Why this misses: Section 15-30 does not automatically extend every active representation duty while a payment remains disputed.

Change the facts: If the written agreement adds further post-termination duties, read those too. Section 15-30 expressly recognizes that a written agreement may provide additional obligations.

Source: 225 ILCS 454/15-30

Check the rule behind your answer

Facts that change an Illinois brokerage-agreement answer
Fact in the question	Rule to check
Seller or owner marketing	Written agreement before marketing or listing: 1450.770(g)
Ordinary buyer or tenant assistance	Before licensed assistance, or as soon as reasonably practical after it: 1450.770(h)
Exclusive label with a service waiver	Minimum-service omission or waiver produces nonexclusive treatment: 1450.770(b)(2) and Act 15-75
Agreement longer than one year	Definite automatic expiration plus the annual client exit on no more than 30 days' prior written notice: Act 10-25
Changed commission amount or payment time	Signed written amendment by the agreement parties; no transaction-contract substitute: 1450.770(j)-(k)
Residential property of four units or fewer	Protection clause must address a valid written agreement with another sponsor during the period: 1450.770(n)
An agreement has ended	Check surviving accounting and confidentiality, additional written duties, and record retention separately: Act 15-30; 1450.755(a)(3)

Read the duration rule with the current statute

Rule 1450.770's agreement-type lists use "or" in their duration wording. The controlling Act, Section 10-25, requires definite automatic expiration and, for terms longer than one year, the annual termination right on no more than 30 days' prior written notice. Do not choose an indefinite term just because an older summary presents annual termination as an alternative. The Act says an agreement missing the required provision is void.

For minimum services, remember three jobs: accept and present offers and counteroffers; assist with their development, communication, negotiation, presentation and related notices until a contract is signed and contingencies are satisfied or waived; and answer the client's questions about those matters. Section 15-75 supplies the full categories.

Required terms depend on the agreement type. Rule 1450.770(c) covers buyer and tenant agreements, (d) covers listings, and (e)-(f) cover property management involving licensed activity. Subsection (m) requires the Illinois antidiscrimination statement in each brokerage agreement. A short comparison chart is not a complete form checklist.

Keep the buyer's role clear

A licensee acting for the seller can work with an unrepresented buyer under subsection (i)(1) after giving the written non-agency disclosure. That does not allow the licensee to advise the buyer as the buyer's agent while calling the buyer unrepresented.

If that same individual will represent both clients, subsection (i)(2) requires the buyer agreement and compliance with Section 15-45 before licensed activities on the buyer's behalf. Present the dual-agency disclosure at the brokerage-agreement stage and obtain informed written consent from all clients before acting as a dual agent. Then obtain written confirmation of that prior consent for the transaction; the statute says this should be obtained when an offer or purchase or lease contract is executed. If the confirmation is included in that document, the client must both sign the document and initial the confirmation provision.

Writing requirements and client remedies are separate. Section 15-50(a-5) allows a client to seek enforcement of an oral agreement and preserves court remedies. Do not turn the writing requirement into an assertion that an oral relationship can never have legal consequences. Licensees still must obtain the required writing.

Retention is a different clock. Rule 1450.755(a)(3) requires five-year retention of transaction records, including the written brokerage agreement. Expiration does not authorize throwing the file away. This is separate from the duration of representation.

Use a missed answer to choose your next review

If you missed a timing or terms question, read the detailed Illinois brokerage-agreements lesson. If you confused service levels, use the exclusive versus nonexclusive comparison. For the difference between the documents, see listing versus buyer brokerage agreements.

After reading the source, explain why your first choice failed and what the changed fact does to the answer. The practice-test review guide shows how to keep a useful correction record. No percentage on this small set establishes that you are ready for the licensing exam.

If more practice on your phone would help, you can download Pass Illinois. These questions and explanations remain available here.

Illinois brokerage-agreement practice FAQ

Are these actual PSI exam questions?

No. These ten scenarios are original practice based on the public Illinois outline and cited law. They are not copied or recalled live exam items, and this set does not predict an exam score.

How many brokerage-agreement questions are on the Illinois exam?

PSI places Brokerage Agreements in Illinois outline II.D. The whole Real Estate License Act area has 16 of the 40 scored state questions, or 40 percent. That allocation is not a promise of 16 brokerage-agreement questions or a fixed count for this subtopic.

Does Illinois always require a buyer agreement before a showing?

For ordinary buyer representation, rule 1450.770(h) says before licensed purchase or lease assistance, or as soon as reasonably practical after it is performed. This is not a universal 24-hour grace period or permission to delay until an offer. Separate applicable firm, form or membership requirements may be stricter; check them.

Does the writing requirement mean an oral agreement can never be enforced?

No. Section 15-50(a-5) expressly allows a client to seek enforcement of an oral agreement and preserves court remedies. The absence of writing is not an affirmative defense to whether an agreement exists or licensed activity occurred. That protection for clients does not permit licensees to skip the written agreement or guarantee a broker a commission.

Does a protection period always mean the first broker gets paid?

No. For residential property of four units or fewer, rule 1450.770(n) requires the protection clause to provide that no fee is due under that agreement if a valid written brokerage agreement with another sponsoring broker is entered during the protection period. Outside those facts, read the agreement and applicable law rather than assuming either automatic payment or automatic cancellation.

What should I do with a missed or guessed answer?

Name the fact that controlled the result: the client's role, the activity, the missing term, the property type or the document used. Read the cited subsection, then answer the changed-fact version. A familiar answer letter is not evidence that you can apply the rule to a new situation.

Official sources and scope

The law and public exam outline were checked for this page on October 23, 2026. The rule amendment took effect July 13, 2026; the current Section 10-25 text includes a source note for P.A. 104-852, effective August 21, 2026. Those source dates are separate from this page's review date.

These are exam-study examples, not advice about a live agreement, a commission entitlement or every MLS or brokerage policy. Use the full current sources and get appropriate professional advice for an actual dispute.

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