- Official section
- State I
- Broker weight
- 10%
- Expected scored items
- About 4 of 40 Illinois items
Illinois Section I study guide
Illinois real estate licensing requirements
These questions test whether a person may enter, stay in, or act within the profession. Build each answer from four checkpoints: activity, license type, license status, and registered sponsorship.
What does this exam area cover?
Short answer: Know which activities require a license, the principal statutory exemptions, the authority of each license type, eligibility and sponsorship, examination rules, renewal cycles, post-license and continuing education, and deadlines for reporting personal or business changes.
The broker exam assigns 10% of the Illinois portion to this area. The managing broker and instructor exam assigns 5%. This guide emphasizes the broker path while clearly separating the rules for managing brokers, residential leasing agents, and instructors.
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What is on the official outline?
- Topic
- Activities requiring a license
- What to know
- For another and for compensation or expected compensation: selling, buying, exchanging, renting, leasing, offering, negotiating, listing, opening property, procuring leads, collecting rent, advertising brokerage activity, and preparing compensated BPOs or CMAs
- Best exam move
- Ask whether the conduct is a licensed activity, is performed for another, and involves compensation or an expectation of it.
- Topic
- Assignable contract and option activity
- What to know
- A pattern of dealing in assignable purchase or sale contracts, options, or similar real estate contracts on two or more occasions in a 12-month period
- Best exam move
- Do not assume acting for oneself always avoids the broker definition when the Act's pattern-of-business rule applies.
- Topic
- License exemptions
- What to know
- Owners and lessors, qualifying regular employees, attorneys and recorded attorneys-in-fact, court or estate fiduciaries, resident managers, government personnel, certain utilities, advertising media, and narrowly limited resident-tenant referrals
- Best exam move
- Match every fact to the exact exemption and do not expand an exemption beyond its stated activity or property.
- Topic
- Broker license
- What to know
- Broad licensed brokerage authority, minimum age 18, high school or equivalent, 75 hours of approved education, examination, application, license issuance, and registered sponsorship
- Best exam move
- Keep education, exam passage, licensing, and activation through sponsorship as separate steps.
- Topic
- Managing broker license
- What to know
- Minimum age 20, active broker experience for two consecutive years out of the last three, 165 total credit hours with 45 managing-broker hours, Illinois-specific exam, sponsorship or self-sponsorship, and possible designated managing broker duties
- Best exam move
- A managing broker can qualify for supervisory appointment, but becomes a designated managing broker only through appointment and Department registration.
- Topic
- Residential leasing agent license
- What to know
- Minimum age 18, high school or equivalent, 15-hour approved pre-license course, examination, residential leasing only, sponsor employment, and the carefully limited 120-day supervised permit path
- Best exam move
- Reject sales, sale referrals, and commercial leasing as outside this limited license.
- Topic
- Pre-license and CE instructor licenses
- What to know
- Pre-license instructor exam score of at least 75%, expertise route, 12-hour instructor program; CE instructor qualifying background and 6-hour development course
- Best exam move
- Treat teaching authority as its own licensed role with different entry rules from brokerage practice.
- Topic
- Eligibility and sponsorship
- What to know
- Age, education, application qualifications, active or inactive status, written employment or association, Department registration, sponsorship establishment, transfer, and termination
- Best exam move
- A current credential does not authorize practice while the licensee is unsponsored or otherwise inactive.
- Topic
- Examination
- What to know
- Separate national and Illinois broker portions, 70% passing score on each, four-attempt rule, repeating only a failed portion before the fourth failure, education reset, and one-year application deadline after passing
- Best exam move
- Track the failed portion, attempt count, education validity, and license-application clock independently.
- Topic
- License renewal
- What to know
- Broker expiration April 30 of even-numbered years, managing broker April 30 of odd-numbered years, residential leasing agent July 31 of even-numbered years, instructor June 30 of odd-numbered years, renewal period, late renewal, and restoration
- Best exam move
- Identify the license type and status before applying an expiration or restoration rule.
- Topic
- Post-license and continuing education
- What to know
- New-broker 45-hour post-license program, later broker 12-hour CE cycle, current 6-hour core and electives, residential leasing agent 8-hour core, and managing broker 12-hour CE plus 12-hour broker-management CE
- Best exam move
- Use initial-license timing and license type; never apply one education total to every licensee.
- Topic
- Changes in personal and business information
- What to know
- Address, email, phone, office location, name, alias, digital platform, business information, sponsorship, office, and designated managing broker changes
- Best exam move
- Use the event-specific clock: many contact and business changes are 24 hours, a name change is 14 days, and certain designated managing broker changes are 15 days.
Which distinctions produce the most mistakes?
- Terms
- License issued vs. sponsorship registered
- Difference
- A license is the Department's credential. Sponsorship is the registered employment or association that permits an otherwise qualified individual to perform licensed activities.
- Question cue
- Has a current license but just left the sponsoring broker.
- Terms
- Broker vs. managing broker
- Difference
- A broker can perform brokerage under sponsorship. A managing broker has additional education and experience and may be appointed to supervision or may self-sponsor.
- Question cue
- Who can become a designated manager or own the sponsorship role?
- Terms
- Managing broker vs. designated managing broker
- Difference
- Managing broker is a license type. Designated managing broker is a registered appointment carrying office supervision responsibilities.
- Question cue
- The license title alone does not create the appointment.
- Terms
- Broker vs. residential leasing agent
- Difference
- A broker has broad licensed authority. A residential leasing agent is limited to residential leasing and may not sell, refer for sale, or handle commercial leasing.
- Question cue
- Residential apartment lease versus home sale or retail lease.
- Terms
- Owner exemption vs. brokerage for others
- Difference
- The owner or lessor exemption applies to property the person owns or leases. It does not become permission to represent a neighbor or unrelated owner for compensation.
- Question cue
- Whose property is involved?
- Terms
- Residential leasing permit vs. license
- Difference
- The 120-day route is a one-time, supervised path toward residential leasing licensure with Department notice, course enrollment by day 60, and all requirements completed by day 120.
- Question cue
- Temporary activity is conditioned, supervised, and time limited.
- Terms
- Pre-license vs. post-license vs. CE
- Difference
- Pre-license education qualifies a candidate for examination. Post-license education applies to a new broker's first term. CE maintains competency in later renewal cycles.
- Question cue
- Before the exam, first term, or later renewal?
- Terms
- Inactive vs. expired
- Difference
- Inactive can describe a current license that cannot be used, often because sponsorship is missing. Expired means the license term has ended without timely renewal.
- Question cue
- Current date on credential versus authorization to practice.
- Terms
- Exam passage vs. license application
- Difference
- Passing establishes exam credit. The candidate still must apply and satisfy issuance requirements within one year after the passing score.
- Question cue
- Passed PSI but never filed with IDFPR.
- Terms
- Contact change vs. name change
- Difference
- Address, email, phone, and office location changes generally have a 24-hour reporting clock. A licensee's name change has a 14-day clock and may require supporting documents.
- Question cue
- Which fact changed and when?
How should you solve a licensing question?
- Name the exact activity, including whether it is performed for another and whether compensation is expected.
- Check for a statutory exemption and apply every limit written into that exemption.
- Identify the required license type: broker, managing broker, residential leasing agent, pre-license instructor, or CE instructor.
- Separate entry requirements into age, education, experience, examination, application, and fees.
- Check whether the credential is current, active, and supported by a valid registered sponsorship.
- For renewal questions, identify the license type, first-license date, renewal cycle, and required education.
- For change questions, identify the changed fact before choosing the 24-hour, 14-day, or 15-day reporting clock.
- Choose the answer that protects the public and follows the narrowest applicable Illinois rule.
- Role or event
- Broker applicant
- Core rule
- Age 18; high school or equivalent; 75 pre-license hours
- Exam anchor
- 60 topics + 15 applied
- Role or event
- Managing broker applicant
- Core rule
- Age 20; 2 of last 3 active years; 165 total hours
- Exam anchor
- 45 new hours; Illinois-specific exam
- Role or event
- Residential leasing agent
- Core rule
- Age 18; high school or equivalent; 15 pre-license hours
- Exam anchor
- Residential leasing only
- Role or event
- Pre-license instructor
- Core rule
- 75% instructor exam; expertise; 12-hour training
- Exam anchor
- 6 development + 6 course content
- Role or event
- CE instructor
- Core rule
- Qualifying background; 6-hour development course
- Exam anchor
- Separate instructor license
- Role or event
- New broker first term
- Core rule
- 45 hours post-license
- Exam anchor
- Three 15-hour courses
- Role or event
- Later broker renewal
- Core rule
- 12 hours CE
- Exam anchor
- 6 core + 6 elective under current curriculum
- Role or event
- Managing broker renewal
- Core rule
- 24 total hours
- Exam anchor
- 12 CE + 12 broker management
- Role or event
- Contact or office change
- Core rule
- Report within 24 hours
- Exam anchor
- Address, email, phone, location
- Role or event
- Individual name change
- Core rule
- Report within 14 days
- Exam anchor
- Supporting record may be required
How do the rules work in scenarios?
Applying the owner exemption
Scenario: Dana owns a two-flat and personally advertises and rents both apartments. A neighbor then offers Dana a fee to rent the neighbor's condominium.
- Dana may generally handle property Dana owns under the owner exemption.
- The condominium belongs to another person.
- Accepting compensation to find a tenant for another owner is licensed brokerage activity.
Answer: The exemption covers Dana's two-flat, not compensated leasing for the neighbor.
Testing a resident-tenant referral
Scenario: A current tenant gives the property manager the name of a prospective renter, does not show a unit or discuss terms, and has made only one other referral in the last 12 months.
- Illinois has a narrow resident-tenant referral exemption.
- It allows no more than three prospects in a 12-month period.
- The tenant must stay at the referral level and compensation cannot exceed $5,000 or two months' rent, whichever is less.
Answer: The referral can fit the exemption if every compensation and activity limit is satisfied.
Separating a current license from active practice
Scenario: A broker's sponsorship ends Monday. On Tuesday, before a new sponsorship is registered, the broker offers to write an offer for a buyer.
- The broker may still hold an unexpired credential.
- Termination of sponsorship makes the license inactive immediately.
- An inactive licensee may not perform licensed activities.
Answer: The broker must wait until the new sponsorship is registered.
Choosing the new-broker education path
Scenario: A broker receives an initial license well before the 180-day window preceding the first renewal deadline and asks whether ordinary 12-hour CE is enough for that first term.
- The individual is in the first broker license term.
- Initial brokers complete 45 hours of post-license education.
- That first-term requirement replaces ordinary broker CE for the term.
Answer: The broker needs the 45-hour post-license program, not only 12 hours of ordinary CE.
What are the common exam traps?
- Trap
- Passing both exam portions creates an active broker license.
- Correction
- The candidate must apply, receive the license, and have registered sponsorship before practicing.
- Trap
- An unexpired license is always active.
- Correction
- A current license can be inactive when sponsorship is missing or the sponsor's authority is invalid.
- Trap
- The owner exemption permits representing other owners.
- Correction
- It applies to the person's own owned or leased property, not compensated brokerage for others.
- Trap
- A residential leasing agent can handle any lease.
- Correction
- The license is limited to residential leasing and excludes commercial leasing and sales activity.
- Trap
- The 120-day residential leasing path is an unrestricted grace period.
- Correction
- It requires sponsor supervision, Department notice, enrollment by day 60, and completion of all licensing requirements within 120 days.
- Trap
- Every broker always completes 12 hours of CE at renewal.
- Correction
- A new broker generally completes 45 hours of post-license education during the first term instead.
- Trap
- The old four-hour broker core is the permanent rule.
- Correction
- The current broker curriculum uses six core hours. A narrow 2026 transition recognized certain four-hour core courses taken by June 30, 2025.
- Trap
- A licensee has 30 days to update an address.
- Correction
- Illinois requires address, email, phone, and office-location changes to be reported within 24 hours.
- Trap
- Approved pre-license education never expires.
- Correction
- It is valid for two years after satisfactory completion.
- Trap
- Failing one portion means retaking both portions immediately.
- Correction
- Before the fourth failure, the candidate repeats only the failed portion, subject to the attempt and validity rules.
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. An Illinois broker's sponsorship is terminated while the license remains unexpired. What is the broker's status for licensed activity?
- Active until the printed expiration date
- Inactive immediately
- Active for 30 days
- Automatically self-sponsored
Show answer and explanation
Answer: B
A current credential is not enough. Termination of sponsorship makes the license inactive immediately until valid sponsorship is registered.
2. Which activity is within an Illinois residential leasing agent's authority?
- Listing a house for sale
- Referring a warehouse buyer
- Negotiating a residential apartment lease
- Showing a retail space for lease
Show answer and explanation
Answer: C
The limited license authorizes residential leasing activity under sponsorship, not sales or commercial leasing.
3. Which education requirement generally applies during a broker's first Illinois license term?
- No education
- Eight hours of leasing-agent CE
- Twelve hours of ordinary broker CE only
- Forty-five hours of post-license education
Show answer and explanation
Answer: D
Initial brokers generally complete 45 hours of post-license education and do not complete ordinary broker CE for that same term.
4. A licensee changes the email address of record. By when should the change be reported to the Division?
- Within 24 hours
- Within 14 days
- At the next renewal
- Only if the physical address also changes
Show answer and explanation
Answer: A
Address, email address, phone, and office-location changes have a 24-hour reporting requirement.
5. Which statement best describes the Illinois owner exemption?
- It allows an owner to represent any neighbor without a license
- It generally covers the owner's own property but does not authorize brokerage for others
- It applies only when no rent is charged
- It converts the owner into a sponsoring broker
Show answer and explanation
Answer: B
The exemption follows property the person owns or leases and does not expand into compensated representation of unrelated owners.
How should you study this area?
- Session
- 1. License trigger and exemptions
- Focus
- Broker definition, compensation, assignable-contract pattern, owners, employees, fiduciaries, resident managers, and tenant referrals
- Proof you are ready
- Classify 12 activities as licensed, exempt, or outside an exemption.
- Session
- 2. License types
- Focus
- Broker, managing broker, designated managing broker, residential leasing agent, pre-license instructor, and CE instructor
- Proof you are ready
- Name the correct role and reject one authority that belongs to another role.
- Session
- 3. Entry requirements
- Focus
- Age, school credential, pre-license hours, experience, interactive courses, attorney route, exam, and application
- Proof you are ready
- Rebuild the license and education table from memory.
- Session
- 4. Exam and sponsorship
- Focus
- 70% per portion, four attempts, failed-portion retest, education reset, one-year filing clock, active status, and transfer
- Proof you are ready
- Resolve five timelines without merging exam credit and practice authority.
- Session
- 5. Renewal and education
- Focus
- Expiration cycles, 45-hour post-license, broker CE, managing-broker CE, leasing-agent CE, late renewal, and restoration
- Proof you are ready
- Assign the correct education rule to five license histories.
- Session
- 6. Change reporting and mixed review
- Focus
- 24-hour, 14-day, and 15-day events plus mixed licensing scenarios
- Proof you are ready
- Score at least 90% on a closed-note set and explain every distractor.
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 Licensing Requirements Exam Guide FAQ
How much of the Illinois broker exam is Licensing Requirements?
Licensing Requirements is 10% of the Illinois broker portion, or about 4 of the 40 scored state items. It is separate from the larger Illinois License Act section.
What education is required for an Illinois broker license?
The standard broker path requires 75 credit hours: a 60-hour Broker Pre-License Topics course and a 15-hour Applied Real Estate Principles course. Approved pre-license education is valid for two years after satisfactory completion.
Can an Illinois broker practice immediately after passing the exam?
No. A passing score is one step. The candidate must apply within one year, receive the license, and have a valid sponsorship registered with IDFPR before performing licensed activities.
What happens when an Illinois broker's sponsorship is terminated?
The license becomes inactive immediately. The individual still holds a current credential, but may not perform licensed activities until a new sponsorship is registered. The sponsor must report establishment or termination of sponsorship within 24 hours.
What can an Illinois residential leasing agent do?
A residential leasing agent may perform licensed activities limited to leasing residential real estate while sponsored and employed by a sponsoring broker. The license does not authorize sales, listings or showings for sale, sale referrals, or commercial leasing.
Does an Illinois property owner need a broker license to rent the owner's own property?
The Act generally exempts an owner or lessor dealing with property the person owns or leases, along with a qualifying regular employee when the work is incidental to that property. The exemption does not authorize brokerage for property owned or leased by others.
How many times can an Illinois broker candidate take the exam?
A candidate may attempt the exam up to four times. Before the fourth failure, only the failed portion must be repeated. After four consecutive failures, the candidate must repeat the applicable pre-license education and submit a new exam application.
What education does a new Illinois broker complete after licensing?
A broker receiving an initial license generally completes 45 hours of post-license education during the first license term instead of ordinary broker continuing education. A license first issued within 180 days before the first renewal deadline receives the rule's extended timing to the second renewal deadline.
How quickly must an Illinois real estate licensee report changed information?
A change of address, email address, phone number, or office location must be reported within 24 hours. A name change must be reported within 14 days. Sponsoring brokers also have 24-hour duties for specified business information changes.
Are these questions copied from the PSI exam?
No. Every practice question here is original and aligned to the published outline. It teaches the tested rules without using confidential live questions.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- Illinois General Assembly, Real Estate License Act of 2000
- Illinois Administrative Code, 68 Ill. Adm. Code Part 1450
- 68 Ill. Adm. Code 1450.150, required licensee information
- 68 Ill. Adm. Code 1450.450, broker continuing education
- 68 Ill. Adm. Code 1450.540, managing broker continuing education
- 68 Ill. Adm. Code 1450.1115, pre-license instructor requirements
- IDFPR, 2026 Real Estate Broker CE Fact Sheet
- IDFPR Division of Real Estate
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.