Additional Illinois laws and regulations for the broker exam

Calculating state and county transfer tax

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.

1. $412,500 divided by $500 equals 825 taxable units.
2. State tax is 825 multiplied by $0.50, or $412.50.
3. 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

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.

1. The property is the couple's qualifying homestead.
2. The deed expressly created tenancy by the entirety.
3. 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

For a covered Illinois housing request, a renter seeks an assistance-animal accommodation. Neither the disability nor the disability-related need is apparent or known, and the renter supplies reliable written support meeting the statutory requirements, including the therapeutic relationship and described need. Assume no specific lawful ground for denial is established.

1. The documentation request concerns the facts that are not readily apparent or known.
2. The stated reliable support addresses the accommodation, not an ordinary pet application.
3. A provider cannot reject compliant support solely because a different form was used. The accommodation still requires the applicable individualized analysis.

Answer: Under the stated covered facts and absence of a lawful denial ground, grant the reasonable accommodation. Do not treat it as permission to demand any medical detail or fee.

Testing commercial-lien coverage

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.

1. A compensation contract can create a right to payment.
2. The lien statute separately defines covered commercial real estate.
3. 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.

A fraction of a $500 transfer-tax unit

The problem supplies a nonexempt taxable transfer value of $100,001 and asks only for Illinois state transfer tax.

1. State tax is $0.50 for each $500 or fraction.
2. The first $100,000 uses 200 units; the additional dollar requires another unit.
3. 201 x $0.50 = $100.50. County and municipal taxes are separate.

Answer: The stated state transfer tax is $100.50.

Separate three homestead systems

One question asks about a judgment creditor. Another asks whether an annual tax exemption reduces the bill directly. A third asks whether one tenant by the entirety can alone convey the qualifying homestead.

1. For the judgment question, examine the residence interest and section 12-901, not the tax-exemption schedule.
2. An annual property-tax exemption generally reduces EAV before the applicable rate is applied.
3. For the entirety conveyance, apply the title statute's qualifying form and both-signature requirement.

Answer: Choose the governing system first; the same word does not produce one universal amount or remedy.

Use the tenant's share in the supplied income example

Rent is $1,800, with a qualifying subsidy paying $1,200. For arithmetic only, apply the stated three-times minimum-income calculation to the tenant's share.

1. The tenant share is $1,800 - $1,200 = $600.
2. Three times that share is $1,800, rather than three times the full rent.
3. A supplied multiplier does not establish that a particular screening policy is reasonable or lawful in every case.

Answer: The supplied calculation yields $1,800 of monthly income, with the subsidy considered separately.

A portal charge does not erase the alternative

A landlord uses a third-party portal that charges an e-check transaction fee. The residential lease was executed after January 1, 2025. No fee-free alternative is offered.

1. The example supplies section 3.5's portal and fee conditions and the applicable lease date.
2. The landlord must allow payment by paper check, cash, or another method that avoids the portal charge under the statute.
3. This does not declare every portal unlawful or require the tenant to use an electronic transfer.

Answer: Provide the required fee-free payment alternative; do not treat the portal charge as unavoidable.

One rental Act, different coverage tests

A student applies the section 15 rekey rule to every rental and the section 20 temperature provision to every building with one older tenant.

1. The rekey section requires its written-lease dwelling definition, a county with more than 3,000,000 inhabitants and the relevant exceptions analysis.
2. The temperature section concerns rental property with occupancy limited to persons 55 or older and has system-specific provisions and exceptions.
3. Other state laws or local ordinances can impose duties even when one of these particular sections does not apply.

Answer: Both blanket conclusions miss coverage conditions. Select the particular section before applying its rule.

A chosen deed and a completed legal process

In one stated example, an owner voluntarily signs and delivers a valid deed to convey an interest. In another, an authorized condemnation process completes a court-ordered transfer under the governing law.

1. The first example is a chosen conveyance under the stipulated deed facts.
2. The second proceeds under the legal taking process, including its authority, public-use and compensation requirements.
3. Do not replace the completed process with a mere default, preliminary bid or statement that there was no will.

Answer: The first illustrates a voluntary transfer; the second illustrates an involuntary transfer under the stated completed process.

1. Which interest in a typical Illinois land trust is personal property?

1. The county's ownership of every parcel
2. The beneficiary's beneficial interest
3. The land itself solely because a trustee holds it
4. The trustee's legal title to the land

2. A nonexempt transfer has the supplied taxable value of $100,001. What is the Illinois state tax before county or municipal tax?

1. $100.00
2. $200.02
3. $100.50
4. $150.00

3. Which advertisement most clearly states an unlawful source-of-income limitation in a covered Illinois housing transaction?

1. Two bedrooms and in-unit laundry
2. Income will be evaluated under lawful, reasonable standards
3. No housing vouchers accepted
4. Near public transportation

4. When may reliable assistance-animal documentation be requested under the Illinois Act?

1. When the disability or disability-related need is not readily apparent or known
2. Only from the housing provider's chosen physician
3. Only after a pet deposit is paid
4. For every request regardless of known facts

5. Which stated property is excluded from the Commercial Real Estate Broker Lien Act's definition?

1. An office building solely because it is leased
2. A vacant parcel with no building or structure
3. A warehouse solely because it is industrial
4. A shopping center solely because it contains shops

6. A question concerns a creditor's judgment against a qualifying residence interest. Which homestead system directly fits?

1. The judgment homestead under section 12-901
2. Only the General Homestead property-tax exemption
3. Only the transfer-tax statute
4. An automatic tax-bill refund

7. One spouse signs a deed alone for the qualifying Illinois homestead expressly held by the spouses as tenants by the entirety. Which rule applies?

1. Marriage automatically makes one signature enough
2. The beneficial interest must first become a cooperative share
3. Both tenants must sign that deed for it to be effective
4. Every joint tenant has this same entirety signature restriction

8. Which description fits cooperative ownership rather than a condominium unit estate?

1. An entity interest linked to occupancy rights
2. A guaranteed exclusion from every housing law
3. A deed to an individually owned condominium unit and attached common share
4. An automatic state property-tax exemption

9. What should a student assume about a land trust's power of direction?

1. It always belongs to every beneficiary equally
2. It always belongs exclusively to the county
3. Its holder must be checked; it need not always be the beneficiary
4. It can never be assigned

10. Which pairing identifies an authorized public taking rather than ordinary property taxation?

1. A tax exemption and automatic ownership
2. Eminent domain and the applicable public-use and compensation requirements
3. Police power and a guarantee that every restriction pays damages
4. Escheat and a routine rent payment

11. An owner dies without a will. What is the proper starting point before assuming escheat?

1. Assume every surviving occupant holds all title
2. Assume the property immediately belongs to the broker
3. Apply the lawful succession rules and identify qualifying takers; no will alone does not establish escheat
4. Treat escheat as an annual property-tax discount

12. A broker offers to draft a custom deed for a customer for no additional fee. Which conclusion follows?

1. Every field in any preliminary form is forbidden
2. Only the purchase price determines legal authority
3. The character of the legal work still matters; a real estate license and no fee do not supply general deed-drafting authority
4. The absence of a fee automatically authorizes the work

13. Which combination fits the stated real-estate-licensee business-broker exemption rather than a license-only shortcut?

1. Every securities transaction without further review
2. Any real estate license regardless of actual work
3. A licensed person primarily engaged in license-required real estate work whose business brokerage is incidental, subject to the statutory conditions
4. Any transaction involving one fixture

14. Under the applicable business-broker disclosure rule, what is the general seven-day relationship, subject to its exceptions?

1. Seven days after the client asks for a refund
2. Seven days after signing in every transaction
3. Seven business days after closing
4. At least seven days before the earlier client contract or consideration

15. What does section 10-35 require for enforceability of a business-broker service contract?

1. Only an application for an insurance policy
2. Only an oral promise if the fee is small
3. Writing signed by all contracting parties
4. Only the broker's unsigned proposal

16. For $412,500 of nonexempt taxable value, assume the county tax is imposed at $0.25 per $500, state tax is $0.50 per $500, and no municipal tax applies. What is the combined amount?

1. $412.50
2. $825.00
3. $618.75
4. $206.25

17. An owner proposes dividing Illinois land into two or more parts, with one part under five acres. What is the correct Plat Act approach?

1. Treat a street address as subdivision approval
2. Assume small parcels are automatically exempt
3. Assume the land must always be divided without recording
4. Check the general survey-and-plat trigger, the statutory exceptions and applicable local rules

18. What does a qualifying annual property-tax homestead exemption generally reduce?

1. Equalized assessed value before the applicable tax calculation
2. The property's ownership percentage
3. The transfer-tax rate in every municipality
4. The note interest rate

19. For arithmetic only, a voucher covers $1,200 of $1,800 rent. A stated three-times minimum-income calculation is applied to the tenant's share. What result follows?

1. $3,600
2. $600
3. $5,400
4. $1,800

20. A housing provider receives otherwise compliant assistance-animal support in a different format from its preferred form. Which statement is correct?

1. The preferred form is always mandatory
2. The request cannot be denied solely for not using that standardized form
3. A pet fee automatically cures the issue
4. Only a diagnosis printed on the provider's form is reliable

21. A covered post-January-1-2025 lease uses a third-party rent portal charging an e-check fee and offers no fee-free method. What does section 3.5 require?

1. Every tenant must pay the fee
2. Automatic cancellation of every lease
3. The portal must be the only method
4. A permitted fee-free alternative, such as the statutory paper-check, cash or other no-charge method

22. Before treating section 15's move-in rekey requirement as applicable, which set of facts needs checking?

1. Only the building's paint color
2. The written-lease dwelling definition, county population and specified tenant-right or owner-occupancy exceptions
3. Only whether a mortgage exists
4. Only whether the tenant owns a pet

23. A covered new home has the required passive radon-resistant features. What can be concluded about its measured radon level?

1. An active fan has necessarily been installed
2. The features do not certify a safe concentration; testing remains a separate task
3. A passive pipe is the same as an air test
4. Every future reading is guaranteed below the action level

24. How should the P.A.104-479 rental-fee changes be treated in an October 2026 study example, after P.A.104-514?

1. All rental fees are unrestricted until 2027
2. Their operative date was moved to January 1, 2027; existing and local protections still need separate analysis
3. Every provision already governs solely because an earlier text said July 2026
4. The date change repealed the Illinois Human Rights Act

25. Which statement avoids overstating Illinois tenancy-by-the-entirety protection?

1. One spouse can always convey the entirety homestead alone
2. Qualifying title and homestead conditions must be met, and creditor protection has statutory limits
3. Marriage alone gives every parcel that title form
4. Every debt and lien is defeated by the form

26. A broker considers recording a commission lien against a seven-unit apartment building. What follows from the one-to-six-unit exclusion alone?

1. No signed compensation instrument is needed
2. That specific unit-count exclusion does not settle the remaining coverage, entitlement and procedure requirements
3. The property is automatically excluded because it is residential
4. Every lien step has already been satisfied

27. An applicant provides a reusable screening report meeting every section 30 condition: a qualifying agency prepared it within the previous 30 days at the applicant's request and expense, it is available through a permitted channel at no access or use cost, and it includes all consistently used criteria. What follows?

1. The landlord may not charge the specified report-access or application-screening fees
2. The landlord may charge a second screening fee merely for an additional application
3. Every unrelated fee is automatically unlawful under this section
4. The landlord must approve the applicant without any further review

28. Which fact is essential to section 20's senior-housing temperature coverage?

1. Rental or occupancy of the residential property is limited to persons 55 or older
2. The tenant has requested a mortgage payoff
3. The property has exactly seven units
4. One tenant anywhere in a general building happens to be 55

29. A tenant receives military orders. What is the sound approach under Illinois section 16?

1. Check the qualifying service, tenant or resident-family status, lease timing, required orders and notice before calculating the statutory termination date
2. Every security deposit is automatically forfeited
3. Every lease ends immediately upon receipt of any orders
4. Only a landlord's oral consent can create the statutory right

30. A housing screening rule is applied identically to every applicant. Is that fact alone enough to establish compliance with the Illinois Human Rights Act?

1. Yes, because discriminatory effects can never matter in Illinois housing
2. No; reasonableness, protected bases and prohibited discriminatory effects still require analysis
3. Only a landlord's preference is relevant
4. Yes, if every applicant pays the same fee