- Official section
- State III
- Broker weight
- 25%
- Expected scored items
- About 10 of 40 Illinois items
Illinois Section III study guide
Additional Illinois laws and regulations
This section rewards classification. First identify whether the facts concern ownership, professional authority, transfer, taxation, housing rights, leasing, a commission lien, or radon construction. Then apply the Illinois rule for that category.
What does this exam area cover?
Short answer: Know Illinois ownership forms and government rights, the boundary between brokerage and other professions, transfer taxes and title, legal descriptions and subdivision plats, real estate taxation, the Illinois Human Rights Act, assistance animals, statewide landlord rules, commercial broker liens, and radon-resistant construction.
The current PSI outline gives this section 10 scored broker questions. It combines eleven distinct Illinois topics, so memorizing one license statute will not cover it. Use the controlling Illinois act named for each issue.
Practice the topic in Pass Illinois
From concept to decision
Drill this topic, then review the explanation
Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.
What is on the official outline?
- Topic
- Illinois ownership interests
- What to know
- Land trusts, the current judgment homestead exemption, police power, eminent domain, taxation, escheat, tenancy in common, joint tenancy, tenancy by the entirety, condominiums, and cooperatives
- Best exam move
- Identify who holds title, who controls the property, whether survivorship exists, and whether the interest is real or personal property.
- Topic
- Illinois land trusts
- What to know
- Trustee title, beneficiary's power of direction, management, possession and proceeds, and treatment of the beneficial interest as personal property
- Best exam move
- Separate title in the trustee from the economic and directional rights of the beneficiary.
- Topic
- Homestead and tenancy by the entirety
- What to know
- $50,000 individual judgment exemption, proportionate combined $100,000 limit, qualifying residence, express creation, married spouses or civil-union partners, survivorship, and both-signature rule
- Best exam move
- Do not confuse creditor protection, property-tax relief, and a form of co-ownership.
- Topic
- Condominiums and cooperatives
- What to know
- Fee ownership of a condominium unit plus an inseparable common-element percentage, versus cooperative ownership through an entity interest and occupancy agreement
- Best exam move
- Ask whether the resident owns a real property unit or an ownership interest tied to occupancy.
- Topic
- Activities beyond a real estate license
- What to know
- Practicing law, drafting legal language beyond authorized forms, securities activity, business-opportunity work, and the Illinois Business Brokers Act
- Best exam move
- A real estate credential does not authorize legal advice, securities services, or every sale of a going business.
- Topic
- Illinois Business Brokers Act
- What to know
- Compensated sale or procurement of an existing business when securities are not involved and real estate is not the dominant element, Secretary of State registration, written disclosure, written contract, and seven-day rescission
- Best exam move
- Classify what is dominant in the deal before assuming ordinary real estate brokerage rules are sufficient.
- Topic
- Illinois real estate transfer taxes
- What to know
- State tax of $0.50 per $500 or fraction, qualifying value, beneficial and controlling-interest transfers, state declaration, exemptions, county tax authority of $0.25 per $500, and possible municipal tax
- Best exam move
- Use the correct taxable event, round fractions up, and keep state, county, and municipal rates separate.
- Topic
- Transfer of title
- What to know
- Voluntary transfer by deed, will, trust, or agreement; involuntary transfer through foreclosure, tax sale, partition, eminent domain, court order, bankruptcy, intestacy, or escheat
- Best exam move
- Identify whether the owner chose the transfer and which instrument or legal process changes title.
- Topic
- Legal descriptions and the Plat Act
- What to know
- Lot and block, metes and bounds, rectangular survey, subdivision into two or more parts when any part is under five acres, survey and plat, statutory exceptions, recording, access, drainage, and local requirements
- Best exam move
- Use a description that identifies the parcel, then ask whether the proposed division triggers a subdivision plat or fits a stated exception.
- Topic
- Illinois real estate taxes and exemptions
- What to know
- Fair cash value, assessed value, 33 1/3% statutory level outside classification exceptions, equalization, tax rate, tax bill, January 1 lien, delinquency, sale, redemption, general homestead, senior, disabled-person, disabled-veteran, and other exemptions
- Best exam move
- Keep valuation, assessment, exemption, equalization, rate, levy, collection, lien, and sale in the correct order.
- Topic
- Illinois Human Rights Act
- What to know
- Unlawful discrimination, familial status, immigration status, source of income, arrest record, transactions, terms, offers, negotiation, advertising, listings, discriminatory criteria, disability accommodations, and blockbusting
- Best exam move
- Apply one consistent, documented housing standard and reject client instructions or advertising that state a protected preference.
- Topic
- Assistance Animal Integrity Act
- What to know
- Assistance animals as reasonable accommodations, apparent versus non-apparent disability or need, reliable written documentation, therapeutic relationship, multiple animals, insufficient documentation, direct threat, damage, and uncontrolled behavior
- Best exam move
- Request only what the statute permits and use an individualized assessment rather than a pet rule or breed assumption.
- Topic
- Illinois Landlord and Tenant Act
- What to know
- Void residential negligence waivers, fee-free rent-payment option when a portal charges a transaction fee, specified rekey duties, military lease termination, senior-housing temperature duties, flood disclosure, and reusable screening reports
- Best exam move
- Check the property's location, unit type, tenant status, and statutory exception because several duties have limited coverage.
- Topic
- Commercial Real Estate Broker Lien Act
- What to know
- Covered commercial real estate, written signed instrument, broker named in the instrument, earned fee, notice of lien, recording, lease and buyer-side timing, notice to owner, priority, enforcement, release, and closing escrow
- Best exam move
- Confirm coverage and a signed compensation instrument before analyzing recording and notice deadlines.
- Topic
- Radon Resistant Construction Act
- What to know
- New single-family homes, dwellings with two or fewer apartments, condominiums, townhouses, passive new-construction pipe, residential contractors, licensed radon contractors, active mitigation, and local enforcement
- Best exam move
- Separate construction standards from radon testing, mitigation of an existing home, and transaction disclosure.
Which distinctions produce the most mistakes?
- Terms
- Land-trust trustee vs. beneficiary
- Difference
- The trustee holds title to the real estate. The beneficiary directs and controls the property and holds a beneficial interest treated as personal property.
- Question cue
- Name on title versus power of direction and proceeds.
- Terms
- Joint tenancy vs. tenancy by the entirety
- Difference
- Both can include survivorship. Tenancy by the entirety is expressly created for a qualifying homestead held by married spouses or civil-union partners and requires both signatures for specified transfers.
- Question cue
- Qualifying couple plus homestead and express deed language.
- Terms
- Judgment homestead vs. property-tax homestead exemption
- Difference
- The judgment homestead protects qualifying residence value from certain creditor process. A property-tax homestead exemption reduces equalized assessed value.
- Question cue
- Creditor levy versus annual tax bill.
- Terms
- Condominium vs. cooperative
- Difference
- A condominium owner holds fee title to a unit and an inseparable common-element share. A cooperative resident generally owns an entity interest connected to occupancy rights.
- Question cue
- Unit deed versus shares or membership plus proprietary occupancy.
- Terms
- Transfer tax vs. property tax
- Difference
- Transfer tax is triggered by a qualifying transfer event. Property tax is a recurring ad valorem charge against real property.
- Question cue
- Deed or beneficial-interest transfer versus annual assessed value.
- Terms
- Voluntary vs. involuntary transfer
- Difference
- Voluntary transfer follows the owner's intentional act, such as a deed or will. Involuntary transfer follows law or process, such as foreclosure, tax sale, partition, or condemnation.
- Question cue
- Owner's chosen instrument versus court or statutory process.
- Terms
- Real estate brokerage vs. business brokerage
- Difference
- Real estate brokerage centers on interests in real estate. The Business Brokers Act addresses compensated business sales where securities are not involved and real estate is not the dominant element.
- Question cue
- What asset and regulatory interest dominate the transaction?
- Terms
- Assistance animal vs. pet
- Difference
- An assistance animal that supports a disability-related need is part of a housing accommodation analysis, not an ordinary discretionary pet request.
- Question cue
- Exception to an animal restriction because of disability-related need.
- Terms
- Earned commission vs. broker lien
- Difference
- A signed agreement can establish a compensation right. A statutory lien requires covered commercial real estate plus timely recording, notice, and enforcement steps.
- Question cue
- Money is owed, but has the lien attached and been perfected?
- Terms
- Radon construction vs. radon transaction disclosure
- Difference
- The construction Act requires passive radon-resistant features in covered new construction. The separate Radon Awareness Act addresses information in covered sales and leases.
- Question cue
- Building method versus transaction notice.
How should you solve an Additional Illinois Laws question?
- Classify the issue as ownership, professional scope, transfer, tax, platting, fair housing, assistance animal, landlord-tenant, lien, or radon construction.
- Name the controlling Illinois act or ownership doctrine before using a general national rule.
- Identify the property type, parties, event, instrument, and location.
- Find the trigger, such as homestead occupancy, a transfer, a protected basis, a written commission agreement, or new residential construction.
- Apply every limit and exception, including acreage, unit count, apparent need, taxable value, recording, notice, and timing.
- Keep similar systems separate: judgment and tax exemptions, state and local taxes, commission and lien, construction and disclosure.
- Choose the answer that preserves legal boundaries, follows the written Illinois rule, and avoids extending a special protection or exception.
- Trigger
- Qualifying residence faces a judgment
- Illinois rule
- Code of Civil Procedure homestead
- Exam anchor
- $50,000 each; proportionate $100,000 combined
- Trigger
- Married couple takes homestead title
- Illinois rule
- Tenancy by the entirety
- Exam anchor
- Express creation; survivorship; both signatures
- Trigger
- Trustee holds real estate for beneficiary
- Illinois rule
- Illinois land trust
- Exam anchor
- Title in trustee; beneficial interest is personal property
- Trigger
- Value transfers in an Illinois deed
- Illinois rule
- Transfer Tax Law
- Exam anchor
- $0.50 per $500 or fraction at state level
- Trigger
- Land divided and a parcel is under 5 acres
- Illinois rule
- Plat Act
- Exam anchor
- Survey and plat unless a statutory exception applies
- Trigger
- Housing standard changes by protected basis
- Illinois rule
- Illinois Human Rights Act
- Exam anchor
- Refuse, terms, ads, listings, criteria all covered
- Trigger
- Disability-related animal request
- Illinois rule
- Assistance Animal Integrity Act
- Exam anchor
- Documentation only when need is not apparent or known
- Trigger
- Commercial commission remains unpaid
- Illinois rule
- Broker Lien Act
- Exam anchor
- Coverage, writing, earned fee, record, notify, enforce
- Trigger
- Covered home is newly constructed
- Illinois rule
- Radon Resistant Construction Act
- Exam anchor
- Passive radon-resistant construction
How do the rules work in scenarios?
Calculating state and county transfer tax
Scenario: A non-exempt Illinois transfer has taxable value of $412,500. Assume the county has imposed its authorized tax and no municipal transfer tax applies.
- $412,500 divided by $500 equals 825 taxable units.
- State tax is 825 multiplied by $0.50, or $412.50.
- County tax is 825 multiplied by $0.25, or $206.25.
Answer: The combined state and county amount is $618.75 under those assumptions.
Applying tenancy by the entirety
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 property is the couple's qualifying homestead.
- The deed expressly created tenancy by the entirety.
- Illinois requires both tenants to sign a deed of that homestead.
Answer: The attempted deed is not effective without the other tenant's signature.
Handling an assistance-animal request
Scenario: A renter requests an exception to a no-animal policy. Neither the disability nor the disability-related need is apparent, and the renter submits reliable written documentation from a provider with a therapeutic relationship.
- The provider may request documentation because the relevant facts were not apparent or known.
- The documentation comes from a qualifying therapeutic relationship and describes the disability-related need.
- The request is analyzed as a reasonable accommodation, not as an ordinary pet application.
Answer: The housing provider should evaluate and grant the accommodation unless a specific statutory ground for denial is established.
Testing commercial-lien coverage
Scenario: A broker has a signed commission agreement for the sale of a vacant Illinois parcel with no building or structure and asks whether the Commercial Real Estate Broker Lien Act secures the fee.
- A compensation contract can create a right to payment.
- 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 commission claim, but this Act does not provide a lien on the vacant parcel.
What are the common exam traps?
- Trap
- A land-trust beneficiary holds record title to the real estate.
- Correction
- The trustee holds title; the beneficiary's directional and economic interest is treated as personal property.
- Trap
- The Illinois homestead exemption is still $15,000.
- Correction
- The amount became $50,000 per individual for qualifying homestead interests on January 1, 2026, with the stated combined limit.
- Trap
- All co-ownership with survivorship is tenancy by the entirety.
- Correction
- Tenancy by the entirety requires qualifying parties, homestead property, and express creation.
- Trap
- A real estate license authorizes legal or securities advice.
- Correction
- The license authorizes brokerage, not another regulated profession. Refer specialized work to the appropriate professional.
- Trap
- Illinois transfer tax is $1.50 per $1,000 statewide.
- Correction
- Keep layers separate: the state rate is $0.50 per $500, and an authorized county rate can add $0.25 per $500. Municipal tax varies.
- Trap
- Every land division under five acres is exempt from platting.
- Correction
- The under-five-acre fact generally triggers the Plat Act when land is divided into two or more parts, unless a specific exception applies.
- Trap
- A landlord can advertise no vouchers.
- Correction
- Source of income is protected in Illinois real estate transactions and advertising.
- Trap
- A housing provider can require its own assistance-animal form.
- Correction
- A standardized form may be requested, but compliant documentation cannot be rejected only because the person used another format.
- Trap
- Any unpaid real estate commission creates a statutory lien.
- Correction
- The commercial lien remedy requires covered property, a signed written instrument, an earned fee, and timely statutory steps.
- Trap
- Passive radon construction proves a home has a safe radon level.
- Correction
- Construction features do not replace testing and do not guarantee a particular concentration.
Can you answer these original practice questions?
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 trustee's recorded title
- The beneficiary's beneficial interest
- Every easement on the parcel
- The county's tax lien
Show answer and explanation
Answer: B
The trustee holds title to the real estate, while the beneficiary's beneficial interest is personal property.
2. A taxable Illinois transfer has a value of $100,001. What is the state transfer tax before any county or municipal tax?
- $100.00
- $100.50
- $150.00
- $200.02
Show answer and explanation
Answer: B
The statute taxes each $500 or fraction. $100,001 requires 201 units, multiplied by $0.50, which equals $100.50.
3. Which housing advertisement creates the clearest Illinois Human Rights Act problem?
- Two bedrooms with in-unit laundry
- No housing vouchers accepted
- Application requires verifiable income
- Building is near a public bus route
Show answer and explanation
Answer: B
A blanket rejection of housing vouchers states a preference based on protected source of income.
4. When may a housing provider request reliable assistance-animal documentation under the Illinois Act?
- For every animal request
- Only when the disability or disability-related need is not readily apparent or known
- Only after charging a pet deposit
- Only from a physician selected by the owner
Show answer and explanation
Answer: B
The documentation trigger is a disability or disability-related need that is not readily apparent or known to the housing provider.
5. Which property is excluded from the Commercial Real Estate Broker Lien Act's definition of commercial real estate?
- An occupied office building
- A shopping center
- A vacant parcel with no structure
- An industrial warehouse
Show answer and explanation
Answer: C
The statutory definition excludes real estate on which no building or structure is located.
How should you study this area?
- Session
- 1. Ownership
- Focus
- Government powers, land trusts, homestead, co-ownership, tenancy by the entirety, condominiums, and cooperatives
- Proof you are ready
- Identify title, control, survivorship, signatures, and property type in eight scenarios.
- Session
- 2. Professional boundaries
- Focus
- Brokerage versus law, securities, and business brokerage; dominant element; registration; writing and rescission
- Proof you are ready
- Classify five mixed-asset transactions and state the correct referral or registration issue.
- Session
- 3. Transfer and plats
- Focus
- State and county transfer tax, voluntary and involuntary transfer, description systems, five-acre trigger, and Plat Act exceptions
- Proof you are ready
- Complete three calculations and two subdivision analyses without notes.
- Session
- 4. Property taxation
- Focus
- Fair cash value, assessment, equalization, exemptions, rate, levy, lien, delinquency, tax sale, and redemption
- Proof you are ready
- Put the tax process in order and distinguish creditor homestead from tax exemptions.
- Session
- 5. Housing law
- Focus
- Illinois protected bases, prohibited conduct, source of income, arrest records, disability, assistance animals, and landlord rules
- Proof you are ready
- Approve or reject ten ads, screening rules, document requests, and lease provisions.
- Session
- 6. Liens, radon, and mixed review
- Focus
- Commercial property coverage, written agreement, recording, notice, priority, enforcement, passive construction, and active mitigation
- Proof you are ready
- Score at least 90% on a mixed set and explain the statute behind every answer.
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.
Illinois Laws and Regulations Exam Guide FAQ
How much of the Illinois broker exam is Additional Laws and Regulations?
This area is 25% of the Illinois broker portion, or about 10 of the 40 scored state items. It is tied with Disclosures as the second-largest state section.
What is the Illinois state real estate transfer tax rate?
The state rate is 50 cents for each $500 of value or fraction of $500. The tax can reach transfers of title, beneficial interests in Illinois real property, and controlling interests in qualifying real estate entities. County and municipal transfer taxes may also apply.
How much is the Illinois homestead judgment exemption?
The current Code of Civil Procedure provides a $50,000 homestead exemption for an individual's qualifying residence interest. 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?
In an Illinois land trust, the trustee holds title to the real property. The beneficiary generally retains the power of direction, management and control, possession, and proceeds, while the beneficial interest is personal property.
What is tenancy by the entirety in Illinois?
It is a form of concurrent ownership for qualifying homestead property held by spouses married to each other or partners in a civil union when the instrument expressly creates it. It carries survivorship, and a deed, mortgage, contract for deed, or lease of the homestead is not effective unless both tenants sign.
Does the Illinois Human Rights Act protect source of income in housing?
Yes. Article 3 prohibits discrimination in real estate transactions because of source of income, along with the Act's other protected bases such as unlawful discrimination, familial status, immigration status, and qualifying arrest records.
Can an Illinois housing provider demand assistance-animal documentation?
Reliable documentation may be requested only when the disability or disability-related need is not readily apparent or known. The documentation must meet the Act's requirements, but a request cannot be denied merely because the person did not use the provider's standardized form.
Does the Commercial Real Estate Broker Lien Act cover every property?
No. Its definition excludes real estate with one to six residential units, property with no buildings or structures, farmland, and unit-by-unit sales or leases of single-family residential units such as condominiums and townhouses.
What does the Illinois Radon Resistant Construction Act require?
All new residential construction covered by the Act must include passive radon-resistant construction. Only a licensed radon contractor may install a radon vent fan or upgrade the passive pipe to an active mitigation system.
Are these practice questions copied from the PSI exam?
No. Every question is an original study item aligned to the public outline and current Illinois sources. It does not reproduce confidential exam content.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- 735 ILCS 5/12-901, Illinois homestead exemption
- 765 ILCS 1005, Joint Tenancy Act
- 765 ILCS 415, Land Trustee as Creditor Act
- 765 ILCS 605, Condominium Property Act
- 815 ILCS 307, Illinois Business Brokers Act of 1995
- 35 ILCS 200, Property Tax Code and Real Estate Transfer Tax Law
- 765 ILCS 205, Plat Act
- 775 ILCS 5, Illinois Human Rights Act
- 310 ILCS 120, Assistance Animal Integrity Act
- 765 ILCS 705, Landlord and Tenant Act
- 770 ILCS 15, Commercial Real Estate Broker Lien Act
- 420 ILCS 52, 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.