- Official section
- Illinois III: Additional Laws and Regulations
- Broker weight
- 25% of the state portion, approximately 10 of 40 scored questions
- Expected scored items
- The current PSI broker outline assigns 25% of the Illinois portion to Additional Laws and Regulations
Illinois practice guide
Classify the Illinois statute before applying the rule
This section punishes keyword matching. Homestead can mean creditor protection or property-tax relief. Radon can mean construction or transaction disclosure. A commission may be earned without a statutory lien. A real estate license does not authorize business brokerage, securities work, or legal advice. Name the Illinois law first, then solve the facts.
Last updated: August 1, 2026
What skill does this practice set measure?
Short answer: Prepare eleven lanes. Ownership includes government powers, land trusts, judgment homestead, joint tenancy, tenancy by the entirety, condominiums, and cooperatives. Professional boundaries separate real estate brokerage from law, securities, and business brokerage. Transfer work covers transfer tax, voluntary and involuntary title change, legal descriptions, subdivision plats, property taxation, exemptions, liens, tax sale, and redemption. Housing law adds Illinois protected bases, assistance-animal documentation, and statewide landlord-tenant provisions. Special statutes cover commercial broker liens and radon-resistant new construction. In every scenario, identify property type, parties, instrument, location, trigger, written requirement, notice, deadline, exception, and remedy.
This page follows the current Additional Laws and Regulations broker outline. It does not relocate seller condition reports, radon transaction notices, lead disclosures, or agency notices from the separate Disclosures area. Local government can add transfer taxes, fair housing protections, landlord-tenant duties, building requirements, and procedures. The current $50,000 individual judgment homestead amount became effective January 1, 2026. Actual transactions require current statute, local law, title, tax, legal, and professional review. Sources were checked through August 1, 2026.
Ready to work the set?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. In an Illinois land trust, which interest is generally treated as personal property?
- The beneficiary's beneficial interest
- The trustee's recorded title
- The county's property-tax lien
- Every easement affecting the parcel
Show answer and explanation
Answer: The beneficiary's beneficial interest
The trustee holds title to the real estate, while Illinois generally treats the beneficiary's beneficial interest as personal property.
2. A nonexempt Illinois transfer has taxable value of $100,001. What is the state transfer tax before county or municipal tax?
- $100.00
- $100.50
- $150.00
- $200.02
Show answer and explanation
Answer: $100.50
The statute taxes each $500 or fraction. The value requires 201 units, and 201 multiplied by $0.50 equals $100.50.
3. Which Illinois housing advertisement creates the clearest source-of-income problem?
- No housing vouchers accepted
- Two bedrooms with in-unit laundry
- Verifiable lawful income required
- Near a public bus route
Show answer and explanation
Answer: No housing vouchers accepted
Source of income is protected under the Illinois Human Rights Act, so a categorical voucher rejection states a protected preference.
4. When may an Illinois housing provider request reliable written assistance-animal documentation?
- When the disability or disability-related need is not readily apparent or known
- For every request regardless of facts
- Only after charging a pet deposit
- Only from a provider selected by the landlord
Show answer and explanation
Answer: When the disability or disability-related need is not readily apparent or known
The statute links documentation to a disability or disability-related need that is not readily apparent or already known to the provider.
5. Which property is excluded from the Commercial Real Estate Broker Lien Act's commercial-real-estate definition?
- A vacant parcel with no building or structure
- An occupied office building
- An industrial warehouse
- A shopping center
Show answer and explanation
Answer: A vacant parcel with no building or structure
The statutory definition excludes real estate on which no building or structure is located.
Which answer habits should you watch for?
- Trap
- The land-trust beneficiary holds record title.
- Correction
- The trustee holds title, while the beneficiary generally directs and holds the personal-property beneficial interest.
- Trap
- The Illinois judgment homestead amount remains $15,000.
- Correction
- The amount became $50,000 per qualifying individual effective January 1, 2026, subject to the combined limit.
- Trap
- Every survivorship estate is tenancy by the entirety.
- Correction
- Tenancy by the entirety requires qualifying parties, homestead property, and express creation.
- Trap
- A real estate license authorizes law, securities, and every business sale.
- Correction
- Each regulated profession and transaction has its own statute, licensing, registration, and referral boundary.
- Trap
- Illinois has one statewide combined transfer-tax rate.
- Correction
- Calculate state, authorized county, and varying municipal layers separately.
- Trap
- Ignore a remainder smaller than $500 in transfer-tax math.
- Correction
- The state statute charges each $500 or fraction, so the fraction creates another taxable unit.
- Trap
- Every division producing a parcel under five acres is exempt from platting.
- Correction
- That fact generally triggers Plat Act analysis unless a specific statutory exception fits.
- Trap
- Creditor homestead and property-tax homestead are the same benefit.
- Correction
- One protects value against certain creditor process; the other reduces taxable assessed value.
- Trap
- An Illinois housing ad may reject vouchers categorically.
- Correction
- Source of income is protected under the Illinois Human Rights Act.
- Trap
- Every assistance-animal request requires the provider's own form.
- Correction
- Documentation depends on whether the disability or need is apparent or known, and another compliant format cannot be rejected solely for format.
- Trap
- Any unpaid real estate commission creates a statutory lien.
- Correction
- Lien protection requires covered property, a signed instrument, an earned fee, and all timely statutory steps.
- Trap
- Passive radon construction guarantees a safe radon level.
- Correction
- Construction features do not replace testing and do not prove a particular concentration.
How should you reason through a difficult item?
The fraction-of-$500 rule changes the answer
Scenario: A nonexempt Illinois transfer has $100,001 of taxable value. Calculate only the state transfer tax.
- $100,001 contains 200 full $500 units plus a fraction.
- The statute charges each $500 or fraction, so the taxable count rounds up to 201 units.
- 201 multiplied by $0.50 equals $100.50.
Answer: The Illinois state transfer tax is $100.50.
Land-trust roles do not merge
Scenario: A trustee holds record title under an Illinois land trust. The beneficiary directs a proposed sale and expects the proceeds. A question asks which interest is personal property.
- The trustee's role is to hold title under the trust arrangement.
- The beneficiary exercises the power of direction and receives the economic benefit.
- Illinois treats the beneficial interest as personal property.
Answer: The beneficiary's beneficial interest is the personal-property interest.
Tenancy by the entirety requires both signatures
Scenario: Two married spouses expressly hold their Illinois homestead as tenants by the entirety. One spouse signs a deed attempting to convey the homestead without the other.
- The parties and property meet the stated qualifying relationship and homestead facts.
- The ownership was expressly created as tenancy by the entirety.
- Illinois requires both tenants to sign a deed of the homestead.
Answer: The attempted deed is not effective without the other tenant's signature.
Source-of-income language is an Illinois red flag
Scenario: A landlord directs the listing broker to publish: No housing vouchers or other rental assistance accepted.
- The statement advertises housing availability and terms.
- Source of income is protected in Illinois real estate transactions.
- A blanket rejection communicates a prohibited preference rather than a neutral ability-to-pay standard.
Answer: The broker should refuse the advertisement and use lawful, consistently applied screening criteria.
A commission contract does not guarantee lien coverage
Scenario: A broker has a signed commission agreement for the sale of an Illinois vacant parcel with no building or structure and proposes to record a lien under the Commercial Real Estate Broker Lien Act.
- The signed agreement may create a contractual compensation right.
- The lien statute separately defines covered commercial real estate.
- Property with no building or structure is excluded from that definition.
Answer: The agreement may support a fee claim, but the statute does not provide the proposed lien on that vacant parcel.
Passive radon construction is not a test result
Scenario: A newly built covered home includes the required passive radon-resistant system. The seller claims this proves that radon is below every action level and eliminates transaction disclosure.
- The construction statute addresses how covered new housing is built.
- A passive system does not itself measure the home's radon concentration.
- Transaction disclosure arises under a separate statute and cannot be erased by the construction feature.
Answer: The passive system neither guarantees a test result nor automatically replaces applicable transaction disclosure.
How should you answer an Additional Illinois Laws question?
- Classify the problem as ownership, professional scope, transfer, tax, legal description, platting, human rights, assistance animal, landlord-tenant, commercial lien, or radon construction.
- Name the controlling Illinois statute or ownership doctrine before applying a broad national rule.
- Identify the property type, unit count, parties, ownership form, transaction, instrument, location, and current date.
- Find the trigger, such as homestead use, transfer value, parcel size, protected basis, disability-related need, signed fee agreement, or new construction.
- Apply every limit, exception, writing, signature, rate, bracket, notice, recording, and deadline stated by the rule.
- Keep judgment and tax exemptions, state and local taxes, compensation and lien, construction and disclosure, and real estate and business brokerage separate.
- Choose the answer that follows the narrow Illinois rule without expanding an exemption, protection, license, lien, or professional authority.
- Verify any time-sensitive amount, rate, or procedure against the cited primary source before using it outside exam study.
- Question trigger
- Trustee holds real estate for a beneficiary
- Illinois rule
- Illinois land trust
- Exam anchor
- Title in trustee; beneficial interest is personal property
- Question trigger
- Qualifying residence faces judgment collection
- Illinois rule
- Section 12-901 homestead
- Exam anchor
- $50,000 individual; proportionate $100,000 combined
- Question trigger
- Qualifying couple expressly holds homestead
- Illinois rule
- Tenancy by the entirety
- Exam anchor
- Survivorship and both-signature transfer rule
- Question trigger
- Value transfers by Illinois deed
- Illinois rule
- Real Estate Transfer Tax
- Exam anchor
- $0.50 per $500 or fraction at state level
- Question trigger
- Division creates a parcel under five acres
- Illinois rule
- Plat Act
- Exam anchor
- Survey and plat unless a statutory exception applies
- Question trigger
- Housing treatment changes by source of income
- Illinois rule
- Illinois Human Rights Act
- Exam anchor
- Protected real estate transaction basis
- Question trigger
- Animal request has non-apparent need
- Illinois rule
- Assistance Animal Integrity Act
- Exam anchor
- Reliable documentation can be requested
- Question trigger
- Commercial commission is unpaid
- Illinois rule
- Broker Lien Act
- Exam anchor
- Coverage, writing, earned fee, record, notice, enforce
- Question trigger
- Covered home is newly built
- Illinois rule
- Radon Resistant Construction Act
- Exam anchor
- Passive radon-resistant construction
- Question trigger
- Question asks for radon transaction notice
- Illinois rule
- Separate Disclosures area
- Exam anchor
- Do not answer with the construction statute
Which outline areas does this set sample?
- Topic
- Illinois ownership interests
- What to know
- Police power, eminent domain, taxation, escheat, tenancy in common, joint tenancy, tenancy by the entirety, land trust, condominium, cooperative, survivorship, homestead, title, control, personal property interest, and signature authority
- Best exam move
- Identify who holds title, who controls the property, whether survivorship exists, and whether the interest is real or personal property.
- Topic
- Land trusts
- What to know
- Trustee, record title, beneficiary, power of direction, management, control, possession, income, proceeds, beneficial interest, personal property, assignment, privacy, and creditor or succession issue
- Best exam move
- Keep trustee title separate from the beneficiary's directional and economic rights.
- Topic
- Homestead and tenancy by the entirety
- What to know
- $50,000 individual judgment exemption, proportionate $100,000 combined limit, qualifying residence, January 1 2026, express creation, married spouses, civil-union partners, survivorship, homestead property, both signatures, deed, mortgage, contract for deed, and lease
- Best exam move
- Separate creditor protection from tax relief and confirm parties, homestead use, express deed language, and signatures.
- Topic
- Condominiums and cooperatives
- What to know
- Condominium unit, fee title, deed, inseparable common-element percentage, declaration, association, cooperative entity, shares or membership, occupancy agreement, common ownership, assessments, and governance
- Best exam move
- Ask whether the resident owns a real-property unit or an entity interest tied to occupancy.
- Topic
- Activities beyond a real estate license
- What to know
- Practice of law, legal drafting, legal advice, securities, business opportunity, going concern, Illinois Business Brokers Act, dominant real estate element, Secretary of State registration, written disclosure, written contract, seven-day rescission, and professional referral
- Best exam move
- Classify the dominant asset and regulated service before assuming the real estate credential is enough.
- Topic
- Illinois transfer taxes
- What to know
- State rate $0.50 per $500 or fraction, qualifying value, deed, beneficial interest, controlling interest, real estate entity, declaration, exemption, county authority $0.25 per $500, municipal rate, responsible party, taxable unit, and round up
- Best exam move
- Confirm the taxable event, round any fraction to the next unit, and calculate state, county, and municipal layers independently.
- Topic
- Transfer of title
- What to know
- Voluntary deed, will, trust, agreement, gift, involuntary foreclosure, tax sale, partition, eminent domain, court order, bankruptcy, intestacy, escheat, current owner, instrument, process, authority, delivery, and recording
- Best exam move
- Identify whether the owner chose the transfer and which instrument or legal process changes title.
- Topic
- Legal descriptions and Plat Act
- What to know
- Lot and block, metes and bounds, rectangular survey, section, township, range, subdivision, two or more parts, parcel under five acres, survey, plat, exception, public record, access, drainage, dedication, local approval, and recording
- Best exam move
- Use a sufficient parcel description, then test the division against the under-five-acre trigger and every statutory exception.
- Topic
- Real estate taxes and exemptions
- What to know
- Fair cash value, assessed value, 33 1/3% level outside classification exceptions, equalization factor, equalized assessed value, exemption, tax rate, tax bill, levy, January 1 lien, installment, delinquency, tax sale, redemption, general homestead, senior, disabled person, disabled veteran, and application
- Best exam move
- Keep valuation, assessment, equalization, exemption, rate, bill, lien, collection, sale, and redemption in order.
- Topic
- Illinois Human Rights Act
- What to know
- Unlawful discrimination, race, color, religion, national origin, ancestry, age, sex, marital status, order of protection status, disability, military status, sexual orientation, pregnancy, familial status, immigration status, source of income, arrest record, retaliation, transaction, terms, advertising, listing, criteria, accommodation, and blockbusting
- Best exam move
- Apply the full current Illinois protection set and refuse instructions or ads that state a protected preference.
- Topic
- Assistance Animal Integrity Act
- What to know
- Reasonable accommodation, disability, disability-related need, readily apparent, known, reliable written documentation, therapeutic relationship, provider, standardized form, multiple animals, direct threat, physical damage, uncontrolled animal, insufficient information, interactive assessment, and no pet rule shortcut
- Best exam move
- Request documentation only when permitted and evaluate the person, need, animal, and claimed risk individually.
- Topic
- Illinois landlord-tenant provisions
- What to know
- Void negligence waiver, fee-free rent-payment option, payment portal fee, specified rekey duty, military lease termination, senior-housing temperature, flood disclosure, reusable tenant-screening report, coverage, unit count, location, notice, exception, and local ordinance
- Best exam move
- Identify the precise statewide statute and coverage facts before importing a Chicago or another local rule statewide.
- Topic
- Commercial Real Estate Broker Lien Act
- What to know
- Covered commercial real estate, excluded one-to-six residential units, excluded vacant land, farmland, unit-by-unit residential transaction, written signed instrument, broker named, fee earned, lien, recording, notice to owner, timing, buyer broker, lease commission, priority, enforcement, release, and closing escrow
- Best exam move
- Prove property coverage and a signed compensation instrument before analyzing perfection, notice, priority, and enforcement.
- Topic
- Radon Resistant Construction Act
- What to know
- Covered new residential construction, single-family, dwelling with two or fewer apartments, condominium, townhouse, passive radon-resistant system, vent pipe, residential contractor, licensed radon contractor, fan, active mitigation, local enforcement, no test guarantee, and separate transaction disclosure
- Best exam move
- Separate construction features from testing, mitigation of an existing home, and Radon Awareness Act transaction notices.
What should you sort out before you begin?
- Terms
- Land-trust trustee vs. beneficiary
- Difference
- The trustee holds record title to the real estate. The beneficiary generally directs and controls the property and holds a beneficial interest treated as personal property.
- Question cue
- Whose name appears in title versus who receives proceeds and exercises the power of direction.
- Terms
- Joint tenancy vs. tenancy by the entirety
- Difference
- Both can carry survivorship. Tenancy by the entirety requires express creation for qualifying homestead property held by married spouses or civil-union partners and imposes both-signature rules.
- Question cue
- Qualifying couple, homestead, express language, and attempted one-party transfer.
- Terms
- Judgment homestead vs. property-tax homestead
- Difference
- The judgment exemption protects qualifying residence value from certain creditor process. A property-tax homestead exemption reduces equalized assessed value for tax purposes.
- Question cue
- Creditor levy versus annual property-tax calculation.
- Terms
- Condominium vs. cooperative
- Difference
- A condominium owner holds fee title to a unit plus a common-element share. A cooperative resident generally owns an entity interest connected to occupancy rights.
- Question cue
- Unit deed versus shares or membership plus an occupancy agreement.
- Terms
- Real estate brokerage vs. business brokerage
- Difference
- Real estate brokerage centers on real-property interests. The Business Brokers Act addresses compensated business sales where securities are not involved and real estate is not the dominant element.
- Question cue
- Which asset and regulatory interest dominate the going-concern sale.
- Terms
- Transfer tax vs. property tax
- Difference
- Transfer tax is triggered by a qualifying transfer event. Property tax is a recurring ad valorem charge based on the property-tax system.
- Question cue
- Deed or beneficial-interest transfer versus assessment and annual tax bill.
- Terms
- Voluntary vs. involuntary transfer
- Difference
- A voluntary transfer follows an owner's chosen instrument or direction. An involuntary transfer follows a court, creditor, tax, condemnation, intestacy, or other legal process.
- Question cue
- Owner signs a deed versus title changes through foreclosure or court order.
- Terms
- Assistance animal vs. pet
- Difference
- A disability-related assistance animal belongs in the reasonable-accommodation analysis. An ordinary pet is governed by discretionary pet rules.
- Question cue
- Requested exception for equal housing opportunity versus ordinary animal preference.
- Terms
- Earned commission vs. broker lien
- Difference
- A valid agreement can establish a right to compensation. A statutory lien additionally requires covered property and the Act's recording, notice, timing, and enforcement steps.
- Question cue
- Money is owed, but did the special lien attach and become perfected.
- Terms
- Radon construction vs. radon disclosure
- Difference
- The construction statute requires passive features in covered new construction. The Radon Awareness Act separately governs information in covered sales and leases.
- Question cue
- How the new building is constructed versus what transaction documents must be delivered.
How should you review your results?
- Session
- 1. Map ownership
- Focus
- Government powers, land trusts, homestead, joint tenancy, tenancy by the entirety, condominiums, and cooperatives
- Proof you are ready
- Identify title, control, personal or real property, survivorship, and required signatures in ten scenarios.
- Session
- 2. Protect professional boundaries
- Focus
- Real estate brokerage, law, securities, business brokerage, dominant element, registration, written disclosure, contract, rescission, and referral
- Proof you are ready
- Classify six mixed-asset or mixed-service assignments before deciding which credential applies.
- Session
- 3. Practice transfers and plats
- Focus
- State, county, and municipal tax; fraction rule; voluntary and involuntary transfer; descriptions; parcel size; survey; plat; exception; and recording
- Proof you are ready
- Solve four transfer-tax examples and four Plat Act classifications without notes.
- Session
- 4. Build the property-tax sequence
- Focus
- Fair cash value, assessment, equalization, exemption, rate, bill, January 1 lien, delinquency, tax sale, and redemption
- Proof you are ready
- Put every stage in order and separate creditor homestead from property-tax exemptions.
- Session
- 5. Apply Illinois housing protections
- Focus
- Protected bases, source of income, arrest record, advertising, screening, accommodation, assistance-animal documentation, and landlord statutes
- Proof you are ready
- Approve or reject twelve ads, policies, documentation requests, and lease clauses using the controlling statute.
- Session
- 6. Finish with special statutes
- Focus
- Commercial lien coverage, writing, earned fee, recording, notice, enforcement, passive radon construction, active mitigation, and disclosure boundary
- Proof you are ready
- Score at least 85% on two fresh mixed sets and name the Illinois source before answering.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
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Questions students ask about Illinois Real Estate Laws Practice Questions: 2026 Guide
How many Illinois broker exam questions cover Additional Laws and Regulations?
The PSI booklet effective June 24, 2026 assigns 25% of the 40 scored Illinois questions to Additional Laws and Regulations, or approximately 10 questions. It is tied with Disclosures as the second-largest state area.
What subjects belong in Additional Illinois Laws?
The current outline covers Illinois ownership interests, activities beyond a real estate license, transfer taxes, transfer of title, legal descriptions and the Plat Act, real estate taxes and exemptions, the Illinois Human Rights Act, the Assistance Animal Integrity Act, landlord-tenant law, the Commercial Real Estate Broker Lien Act, and the Radon Resistant Construction Act.
What is the Illinois state real estate transfer-tax rate?
The state rate is $0.50 for each $500 of value or fraction of $500. A qualifying county tax can add $0.25 per $500, and municipal transfer tax may vary. Keep those government layers separate in calculations.
What is the current Illinois judgment homestead exemption?
Effective January 1, 2026, an individual's qualifying homestead interest has a $50,000 exemption under Section 12-901. When two or more individuals own the homestead, each person's exemption is limited to the person's proportionate share of a combined $100,000.
What is an Illinois land trust?
The trustee holds title to the real estate. The beneficiary generally retains the power of direction, management and control, possession, and the right to proceeds, while the beneficial interest is treated as personal property.
Does Illinois protect source of income in housing?
Yes. The Illinois Human Rights Act prohibits real estate discrimination based on source of income, along with other Illinois protected bases. A housing ad stating that vouchers are not accepted creates a direct exam red flag.
When may a provider request assistance-animal documentation?
Reliable written documentation may be requested when the disability or disability-related need is not readily apparent or already known. A provider may not reject otherwise compliant documentation solely because the person did not use the provider's preferred form.
Does the commercial broker lien law cover every parcel?
No. The statutory definition excludes, among other categories, real estate with one to six residential units, property with no building or structure, farmland, and certain unit-by-unit residential transactions. A commission right and a statutory lien are separate questions.
What does Illinois require in covered new residential construction for radon?
The Radon Resistant Construction Act requires passive radon-resistant construction in covered new residential construction. A licensed radon contractor is required to install a radon vent fan or upgrade the passive system to active mitigation.
Are these official PSI Additional Illinois Laws questions?
No. These are original scenarios aligned to the current public outline and primary Illinois sources. They are not copied or recalled live questions. The governing materials cited here were checked through August 1, 2026.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- Illinois General Assembly, 735 ILCS 5/12-901, Homestead
- Illinois General Assembly, Land Trust Beneficial Interest Act
- Illinois General Assembly, Condominium Property Act
- Illinois Department of Revenue, Real Estate Transfer Tax
- Illinois General Assembly, Plat Act
- Illinois General Assembly, Property Tax Code
- Illinois General Assembly, Illinois Human Rights Act
- Illinois General Assembly, Assistance Animal Integrity Act
- Illinois General Assembly, Landlord and Tenant Act
- Illinois General Assembly, Commercial Real Estate Broker Lien Act
- Illinois General Assembly, Radon Resistant Construction Act
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.