Illinois Real Estate Broker Exam — All Questions

A licensee tells prospective buyers that a neighborhood is 'changing' and encourages owners to sell quickly based on the race of incoming residents. This illegal practice is called:

• a.Redlining
• b.Steering
• c.Blockbusting✓
• d.Puffing

Blockbusting is inducing owners to sell by suggesting that people of a particular protected class are moving into the area. It violates the federal Fair Housing Act, as do steering and redlining.

Commingling in real estate practice refers to:

• a.Mixing client or escrow funds with the broker's personal or business funds✓
• b.Representing two clients in one deal
• c.Combining two parcels of land
• d.Advertising without the broker's name

Commingling is improperly mixing client trust or escrow funds with the broker's own funds, and it is prohibited. Client funds must be held in a separate trust or escrow account.