Of the government's four powers over land (remembered as PETE), which one lets the government take private property for a public use upon paying just compensation?

escheat when an owner leaves no heirs

taxation to raise public revenue

police power to regulate land use

A key benefit of a VA-guaranteed loan for eligible veterans is that:

it can allow an eligible veteran to purchase with no down payment

it eliminates every closing cost on the purchase

it is a grant that never has to be repaid

it charges the veteran borrower absolutely no interest at all over the term

An agent who secretly earns a profit or referral fee beyond the agreed commission without telling the principal has:

breached the fiduciary duties of loyalty and disclosure

acted properly within agency law

earned a lawful performance bonus

In a net lease, the tenant pays base rent plus:

some or all of the property expenses such as taxes, insurance, or maintenance

the landlord's mortgage principal payments

nothing at all beyond the base rent

a percentage of the tenant's gross sales

A lender that charges an interest rate higher than the maximum allowed by law is engaged in:

Subordination, the voluntary lowering of one lien's priority beneath another lien

Amortization, the gradual repayment of a loan through regular periodic payments

Redlining, the discriminatory refusal to lend within certain mapped neighborhoods

An agent directs minority buyers only toward certain neighborhoods and away from others based on race. This fair-housing violation is:

A permissible time-saving service the agent lawfully provides to help busy buyers narrow choices

Redlining, a lending practice that denies loans or insurance within certain mapped neighborhoods

Blockbusting, inducing owners to sell quickly by playing on fear about a protected group arriving

Under 'Megan's Law' concepts, information about registered sex offenders is generally:

Publicly available through a government registry buyers can check

Something the seller is legally required to physically post on a sign outside the property itself

A closely guarded secret that only actively licensed real estate agents are permitted to access

Illegal for any private citizen, including a prospective buyer, to attempt to look up or review

Illinois Real Estate Broker Exam Practice Test

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A full bank of original Illinois Real Estate Broker Exam practice questions across the official content areas, weighted like the real exam, with explanations. Free, no signup.

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About 140 questions, and you need 70% to pass. Practice by topic here, then take the full timed mock exam to gauge readiness.

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Sample practice questions

A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.

1. Property Ownership
Which type of estate gives an owner the fullest bundle of rights, is of potentially unlimited duration, and passes to the owner's heirs?
- a.Fee simple absolute
- b.Estate at will
- c.Estate for years
- d.Life estate
Answer: a
Explanation: A fee simple absolute is the highest and most complete estate in land: it lasts indefinitely and is freely inheritable and transferable. A life estate ends at the death of the measuring life, so it is not inheritable. An estate for years and an estate at will are leasehold (less-than-freehold) estates that give possession, not ownership, so they confer far fewer rights.
2. Land Use Controls and Regulations
Of the government's four powers over land (remembered as PETE), which one lets the government take private property for a public use upon paying just compensation?
- a.escheat when an owner leaves no heirs
- b.taxation to raise public revenue
- c.eminent domain
- d.police power to regulate land use
Answer: c
Explanation: Eminent domain is the power to take private property for a public use, exercised through condemnation, and it requires just compensation. Police power regulates use without taking title, escheat transfers property to the state when an owner dies without heirs, and taxation raises revenue.
3. Financing
A key benefit of a VA-guaranteed loan for eligible veterans is that:
- a.it eliminates every closing cost on the purchase
- b.it is a grant that never has to be repaid
- c.it charges the veteran borrower absolutely no interest at all over the term
- d.it can allow an eligible veteran to purchase with no down payment
Answer: d
Explanation: The VA guarantee protects the lender against loss, allowing eligible veterans to buy with little or no down payment and no monthly mortgage insurance. It is still a loan that must be repaid with interest, and it does not waive all closing costs.
4. Agency
An agent who secretly earns a profit or referral fee beyond the agreed commission without telling the principal has:
- a.engaged in permitted puffing
- b.acted properly within agency law
- c.earned a lawful performance bonus
- d.breached the fiduciary duties of loyalty and disclosure
Answer: d
Explanation: An agent may not make a secret profit; undisclosed fees or markups violate loyalty and disclosure and can require forfeiture of the profit and commission. Any additional compensation must be disclosed and consented to.
5. Property Management
In a net lease, the tenant pays base rent plus:
- a.some or all of the property expenses such as taxes, insurance, or maintenance
- b.the landlord's mortgage principal payments
- c.nothing at all beyond the base rent
- d.a percentage of the tenant's gross sales
Answer: a
Explanation: A net lease requires the tenant to pay base rent plus one or more property expenses (taxes, insurance, maintenance); a triple-net lease passes all three to the tenant. Percentage leases instead tie rent to sales.
6. Real Estate Calculations
If a lender's rule of thumb is that each discount point paid raises the lender's yield by about 1/8% (0.125%), roughly how many points must be charged to raise the yield by 0.5%?
- a.8 points
- b.2 points
- c.4 points
- d.6 points
Answer: c
Explanation: Points needed = desired yield increase / yield per point = 0.5% / 0.125% = 4 points. Buyers or sellers 'buy down' the rate by paying points that boost the lender's effective return.
7. Financing
A lender that charges an interest rate higher than the maximum allowed by law is engaged in:
- a.Subordination, the voluntary lowering of one lien's priority beneath another lien
- b.Usury
- c.Amortization, the gradual repayment of a loan through regular periodic payments
- d.Redlining, the discriminatory refusal to lend within certain mapped neighborhoods
Answer: b
Explanation: Usury is charging interest above the legal maximum rate. Redlining is discriminatory refusal to lend in certain areas, subordination changes lien priority, and amortization is the gradual repayment of a loan through periodic payments.
8. Agency
An agent directs minority buyers only toward certain neighborhoods and away from others based on race. This fair-housing violation is:
- a.A permissible time-saving service the agent lawfully provides to help busy buyers narrow choices
- b.Redlining, a lending practice that denies loans or insurance within certain mapped neighborhoods
- c.Blockbusting, inducing owners to sell quickly by playing on fear about a protected group arriving
- d.Steering
Answer: d
Explanation: Steering is channeling buyers toward or away from particular areas based on a protected characteristic such as race, and it violates the Fair Housing Act. It is never a permissible 'convenience.' Redlining is a lending practice, and blockbusting induces sales through fear.
9. Property Disclosures
Under 'Megan's Law' concepts, information about registered sex offenders is generally:
- a.Publicly available through a government registry buyers can check
- b.Something the seller is legally required to physically post on a sign outside the property itself
- c.A closely guarded secret that only actively licensed real estate agents are permitted to access
- d.Illegal for any private citizen, including a prospective buyer, to attempt to look up or review
Answer: a
Explanation: Megan's Law makes sex-offender registry information publicly accessible, and many jurisdictions direct buyers to consult the official registry rather than placing an affirmative duty on the agent to research it. The information is public, not secret or off-limits, though specific agent obligations vary by state.
10. Illinois Real Estate License Act
What is the minimum age to apply for an Illinois broker license?
- a.16 years old
- b.20 years old
- c.18 years old
- d.21 years old
Answer: c
Explanation: A broker applicant must be at least 18. Public Act 101-0357 lowered this from 21, so older study material still says 21 and is wrong. Do not confuse it with the managing broker minimum, which is 20. Cite: 225 ILCS 454/5-27(a).

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