Illinois Real Estate Broker Exam — All Questions

Under the Illinois Real Estate License Act, real estate licensees are regulated by which agency?

• a.The Illinois Association of REALTORS membership board
• b.The county recorder of deeds where the office sits
• c.The Department of Financial and Professional Regulation✓
• d.The consumer fraud division of the Attorney General

The Illinois Department of Financial and Professional Regulation (IDFPR) administers and enforces the Real Estate License Act and issues licenses. Trade associations do not regulate licensure.

In Illinois, a person who wishes to independently operate a real estate brokerage and hold others' licenses must hold what type of license?

• a.Broker license
• b.Managing broker license✓
• c.Leasing agent license
• d.Residential appraiser license

In Illinois a managing broker license is required to operate a brokerage and supervise sponsored brokers. The entry-level broker license must be sponsored by a managing broker.

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

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).

What is the minimum age to apply for an Illinois managing broker license?

• a.20 years old✓
• b.18 years old
• c.19 years old
• d.21 years old

A managing broker applicant must be at least 20, lowered from 21 by Public Act 101-0357. The broker minimum is 18, so the two licenses have different age floors and the exam tests whether you know both. Cite: 225 ILCS 454/5-28(a).

Besides the age requirement, what licensure history must an Illinois managing broker applicant have?

• a.Licensed as a broker for 1 of the 2 preceding years
• b.Licensed in any state for 5 consecutive years running
• c.Any active license plus 45 hours of post-license work
• d.Licensed as a broker 2 consecutive of the preceding 3✓

The applicant must have been licensed as a broker for at least 2 consecutive years out of the 3 years immediately preceding application. The 'consecutive' word matters: two separate single years inside the window do not qualify. Cite: 225 ILCS 454/5-28(a).

How many hours of pre-license education must an Illinois broker applicant complete?

• a.45 hours
• b.75 hours✓
• c.60 hours
• d.90 hours

The broker pre-license requirement is 75 hours. Of that, 15 hours must consist of situational and case studies delivered in a classroom, live interactive webinar, or online distance education. The curriculum is structured as 60 hours of Real Estate Topics plus 15 hours of Applied Real Estate Principles. Cite: 225 ILCS 454/5-27(a)(5).

Of the 75 hours of Illinois broker pre-license education, how many hours must be situational and case studies?

• a.15 hours✓
• b.6 hours
• c.12 hours
• d.30 hours

15 of the 75 hours must be situational and case studies, which is the Applied Real Estate Principles portion. The remaining 60 hours are Real Estate Topics. Cite: 225 ILCS 454/5-27(a)(5).

Under amendments effective January 1, 2025, how long does completed Illinois pre-license education remain valid?

• a.1 year
• b.4 years
• c.It does not expire
• d.2 years✓

Public Act 103-1039 clarified that pre-license education is valid for only two years after all required coursework is completed. A candidate who finishes the classroom work and then delays the license application past that window must repeat it. Cite: Public Act 103-1039, effective 1/1/2025.

How many hours of post-license education must a newly licensed Illinois broker complete?

• a.12 hours
• b.15 hours
• c.30 hours
• d.45 hours✓

45 hours of post-license education is required, and it is separate from both the 75-hour pre-license requirement and ordinary continuing education. Cite: 225 ILCS 454/5-50(b).

How is the Illinois 45-hour broker post-license education requirement structured?

• a.A single 45-hour course ending in one 100-question final exam
• b.Nine 5-hour modules, none of which carries a final examination
• c.Three 15-hour courses, each with its own 50-question final exam✓
• d.A 30-hour core course plus a 15-hour elective, with no exam

It is three 15-hour courses covering applied brokerage principles, risk management and discipline, and transactional issues. Each of the three requires its own 50-question final examination. Cite: 225 ILCS 454/5-50(b).

Which three subjects make up the three courses of Illinois broker post-license education?

• a.Appraisal practice, property management, and real estate finance
• b.Fair housing law, statutory agency, and advertising compliance
• c.Applied brokerage, risk management, and transactional issues✓
• d.Contract law, escrow accounting, and Illinois license law

The statute names the three 15-hour courses as applied brokerage principles; risk management and discipline; and transactional issues. Cite: 225 ILCS 454/5-50(b).

A broker receives a first Illinois license within 180 days before the next broker renewal deadline. When must the 45 hours of post-license education be completed?

• a.Before that first renewal deadline, with no extension allowed
• b.Within 180 days of the date the license was actually issued
• c.Within twelve months of the date the license was issued
• d.By the second broker renewal deadline after the license issues✓

Because so little of the term remains, the statute allows that licensee to complete the 45 hours before the second renewal deadline after the license is issued, rather than the first. Cite: 225 ILCS 454/5-50(b).

What was the deadline for the 2026 Illinois real estate broker license renewal?

• a.December 31, 2026
• b.January 31, 2026
• c.April 30, 2026✓
• d.June 30, 2026

The Illinois broker renewal deadline is April 30 of the renewal year; IDFPR's 2026 fact sheet states the 2026 deadline as April 30, 2026. Brokers renew on a two-year cycle ending on that date. Cite: IDFPR Division of Real Estate, 2026 Broker CE Fact Sheet.

An Illinois broker first licensed before November 1, 2023 renews in 2026. How many total continuing education hours are required?

• a.6 hours
• b.24 hours
• c.12 hours✓
• d.45 hours

That licensee needs 12 hours: a 6-hour Core course plus 6 hours of electives, which must include Sexual Harassment Prevention Training. A broker first licensed on or after November 1, 2023 is instead on the 45-hour post-license track, not this one. Cite: IDFPR Division of Real Estate, 2026 Broker CE Fact Sheet.

Under amendments effective January 1, 2025, how many hours does the Illinois broker Core continuing education course now carry?

• a.3 hours
• b.6 hours✓
• c.4 hours
• d.8 hours

Public Act 103-1039 raised the Core requirement from 4 hours to 6. Study material written before 2025 still says 4 hours. A 4-hour Core taken between May 1, 2024 and June 30, 2025 satisfies the Core for that renewal, but the licensee then needs 8 elective hours instead of 6. Cite: Public Act 103-1039; IDFPR 2026 Broker CE Fact Sheet.

Within the 6-hour Illinois Core continuing education course, how many hours must address Fair Housing?

• a.1 hour
• b.2 hours✓
• c.3 hours
• d.The Core course has no Fair Housing mandate

The 2025 amendment that raised Core from 4 to 6 hours also required that 2 of those hours be Fair Housing training. Cite: Public Act 103-1039, effective 1/1/2025.

How does Sexual Harassment Prevention Training count toward an Illinois broker's renewal requirement?

• a.Required on top of, and never counted within, the CE hours
• b.It substitutes for the Core course requirement entirely
• c.It is demanded only of managing brokers at renewal time
• d.It may count as elective hours through an approved provider✓

The training is mandatory, and IDFPR allows it to be counted within the elective hours when it is completed through an approved education provider. For those on the 45-hour post-license track, the required 1 hour of Sexual Harassment Prevention Training is already inside that curriculum. Cite: IDFPR 2026 Broker CE Fact Sheet.

An Illinois broker is first issued a license on or after November 1, 2025. What is that license's expiration date?

• a.April 30, 2026
• b.April 30, 2028✓
• c.October 31, 2027
• d.December 31, 2027

A license first issued in that window is set to expire 4/30/2028, and the 45 hours of post-license education must be completed by that date. The longer first term exists so a new licensee has a full cycle to finish post-license education. Cite: IDFPR 2026 Broker CE Fact Sheet.

Effective January 1, 2026, how does an out-of-state broker obtain an Illinois license?

• a.Through reciprocity agreements with specific named states
• b.Through an endorsement process that replaced reciprocity✓
• c.By sitting the full Illinois examination with no prior credit
• d.Only after first surrendering the out-of-state license

From January 1, 2026 all brokers and managing brokers licensed outside Illinois apply through an endorsement process. This replaced the reciprocity process that had operated with specific states, so answers naming reciprocity describe the former rule. Cite: IDFPR Division of Real Estate.

How quickly must the Department be notified when sponsorship of an Illinois licensee is established or terminated?

• a.Immediately, before the licensee performs any act
• b.Within 15 days
• c.Within 30 days
• d.Within 24 hours✓

24 hours' notice to the Department is required either way. Whether the sponsoring broker or the licensee initiates the termination, the initiating party carries the duty to notify. Cite: 225 ILCS 454/5-40.

What happens to an Illinois licensee's status the moment sponsorship is terminated?

• a.It becomes inactive until a new sponsorship is registered✓
• b.It stays active for a 30-day grace period after termination
• c.It is suspended and a hearing is needed before it is restored
• d.It is revoked, and the licensee must apply for a new license

Termination makes the license inactive automatically, and it stays inactive until a new sponsorship is registered with the Department. Inactive is not the same as suspended or revoked: no discipline has occurred, but the licensee may not practice. Cite: 225 ILCS 454/5-40(b).

What replaced the physical sponsor card formerly issued to Illinois licensees?

• a.A notarized affidavit kept in the office file
• b.An annual sponsorship fee receipt
• c.A sponsor card issued by the local board of REALTORS
• d.A valid sponsorship registered with the Department✓

Physical sponsor cards are no longer required. What matters is that a valid sponsorship is registered with the Department. Cite: 225 ILCS 454/5-10(b) and 5-27(c).

An Illinois licensee is convicted of a crime during the license term. Within what period must the Department be notified?

• a.Within 24 hours of the conviction being entered
• b.Within 10 days of the conviction being entered
• c.Within 30 days after the conviction is entered✓
• d.Only at the licensee's next scheduled renewal

Failing to notify the Department of a criminal conviction occurring during the licensure term within 30 days is itself a ground for discipline. The duty is triggered by the conviction, not by sentencing or by renewal. Cite: 225 ILCS 454/20-20(a)(45).

Under the Illinois Real Estate License Act, what is a 'designated managing broker'?

• a.A managing broker the sponsoring broker appoints to supervise offices✓
• b.Any broker who has finished 45 hours of post-license education
• c.The managing broker holding the largest share of the brokerage
• d.A monitor the Department places in a disciplined brokerage

The designated managing broker is appointed by the sponsoring broker and carries supervisory responsibility for licensees in one or multiple offices. The classification was created by Public Act 101-0357. Cite: 225 ILCS 454/1-10.

What must an Illinois sponsoring broker do about designated managing brokers?

• a.Appoint one for the whole company and no more than one
• b.Appoint one only once the brokerage exceeds ten sponsored licensees
• c.Rotate the appointment annually among all qualified brokers
• d.Name one per office and notify the Department of each appointment✓

The sponsoring broker supervises all designated managing brokers, must name one for each office, and must notify the Department of all of them and which offices they manage. Cite: 225 ILCS 454/5-45(b).

Which duties must a designated managing broker handle directly for a broker who has not completed the 45-hour post-license education?

• a.Only the monthly reconciliation of the escrow account
• b.Only advertising copy and the placement of yard signage
• c.Earnest money, escrow, contract negotiation, and advertising✓
• d.Only the retention of continuing education completion records

Until the new broker completes post-license education, the designated managing broker must directly handle all earnest money, escrows, contract negotiations, and advertisements for that broker. Cite: 225 ILCS 454/10-55(b).

Which of the following are listed responsibilities of an Illinois designated managing broker?

• a.Setting the brokerage's commission rates and cooperative splits
• b.Personally holding the brokerage's errors and omissions policy
• c.Supervision and training, company policy, and the special accounts✓
• d.Approving the sponsoring broker's tax filings and payroll records

The statute lists supervision and training of all licensees and employees at each assigned office, implementing company policies, and supervision of all the sponsoring broker's special accounts. Cite: 225 ILCS 454/10-55(a).

On which advertising may an Illinois designated managing broker omit identifying themselves as the designated managing broker?

• a.Yard signs placed on the listed property✓
• b.Listings displayed on internet real estate portals
• c.Business cards handed to prospective clients
• d.Printed brochures distributed at an open house

A designated managing broker must identify themselves to the public as such on all advertising, with yard signs the stated exception. Cite: 225 ILCS 454/10-30(g).

How long must an Illinois sponsoring broker retain records relating to a special account transaction?

• a.One year from the transaction
• b.Two years from the transaction✓
• c.Three years from the transaction
• d.Five years from the transaction

Records relating to a special account transaction must be kept at least 5 years, and electronic records must be backed up monthly. Cite: 225 ILCS 454/5-45(d).

How often must an Illinois sponsoring broker back up electronic records of special account transactions?

• a.Monthly✓
• b.Weekly
• c.Quarterly
• d.Annually

Electronic records must be securely stored in their original format, made accessible to the Department, and backed up monthly. Cite: 225 ILCS 454/5-45(d).

Where must an Illinois sponsoring broker keep physical records that the Act requires to be maintained?

• a.At the designated managing broker's own home address✓
• b.At whichever branch office the sponsored licensee picks
• c.At the sponsoring broker's principal office, open to review
• d.With the recorder of deeds for the county of the property

A physical record required to be maintained must be securely stored and made accessible to the Department at the sponsoring broker's principal office. Cite: 225 ILCS 454/5-45(d).

An Illinois licensee pays a fee to an unlicensed acquaintance who referred a buyer and who was not a party to the transaction. What is the consequence?

• a.It is permitted if the fee is under $500
• b.It is permitted if disclosed to both parties in writing
• c.It is a ground for discipline against the licensee✓
• d.It is permitted only in commercial transactions

Paying compensation to an unlicensed person who is not a party to the transaction in exchange for a referral is a ground for discipline. There is no dollar threshold and disclosure does not cure it. Cite: 225 ILCS 454/10-15(e).

What does the Illinois Act require on any property data form accessible to the consumer?

• a.The sponsoring broker's license number and expiration date
• b.Disclosure of the licensee's status as a licensee✓
• c.The most recent appraised value recorded for the property
• d.A statement of the cooperating commission being offered

Failure to indicate disclosure of licensee status on a property data form accessible to the consumer is a ground for discipline. Cite: 225 ILCS 454/10-30(c)(1).

Must a claim against the Illinois Real Estate Recovery Fund arise from intentional misconduct?

• a.Yes, only fraud and conversion of funds can support a claim
• b.Yes, unless the licensee has died before the claim is filed
• c.No, the loss need not result from intentional misconduct✓
• d.Only losses involving special account funds can be claimed

The Act provides that a claim against the Fund does not need to arise from a loss resulting from intentional misconduct. The Department sets by rule the maximum an aggrieved person may recover and the maximum liability arising out of one licensee's activities. Cite: 225 ILCS 454/20-85.

Which statement about attorney's fees in an Illinois Real Estate Recovery Fund claim is correct?

• a.There is no longer a cap on attorney's fees✓
• b.Attorney's fees may never be recovered
• c.Attorney's fees are capped at 10% of the award
• d.Attorney's fees are capped at $2,500

Public Act 101-0357 removed the cap on attorney's fees in Recovery Fund claims. The Department still sets maximum recovery amounts by rule, but that is a separate limit from attorney's fees. Cite: 225 ILCS 454/20-85.

An applicant business entity has an officer who was denied an Illinois real estate license three years ago. What is the result?

• a.The entity may be licensed once that officer resigns the post✓
• b.No license issues, the denial falling inside the 5-year window
• c.The entity is licensed but placed on probationary status
• d.The prior denial has no bearing on an entity's application

No person, partnership, or business entity may be granted a license if any owner, officer, director, partner, member, or manager was denied a real estate license in the previous 5 years or is currently barred from practice. Three years is inside that window. Cite: 225 ILCS 454/5-15(f).

Cheating on a continuing education course or a licensing examination in Illinois is:

• a.Handled solely by the education provider
• b.A civil matter between the provider and the student
• c.Grounds for a fine but not license discipline
• d.An enumerated ground for discipline under the Act✓

Cheating on continuing education courses or examinations is specifically enumerated as a ground for discipline. Cite: 225 ILCS 454/20-20(a)(7).

A person performs real estate brokerage in Illinois while their license is inactive. How does the Act treat this?

• a.As a minor administrative lapse with no consequence
• b.As unlicensed practice, an enumerated ground for discipline✓
• c.As permitted if a managing broker supervises the work
• d.As permitted if the license is later reactivated

Engaging in brokerage without a license, with an expired license, or while the license is inactive, revoked, or suspended is unlicensed practice and an enumerated ground for discipline. Inactive counts, which is why the automatic inactive status on sponsorship termination matters so much. Cite: 225 ILCS 454/20-20(a)(6).

Submitting a payment to IDFPR with a credit or debit card that is invalid, expired, or declined:

• a.Is an enumerated ground for discipline✓
• b.Has no consequence beyond the failed payment
• c.Voids the license automatically
• d.Is treated as fraud and referred for prosecution

The Act specifically makes submitting a credit or debit card payment using a card that is invalid, expired, or declined a ground for discipline. Cite: 225 ILCS 454/20-25.

Through what date has the Illinois Real Estate License Act of 2000 been extended?

• a.January 1, 2027
• b.January 1, 2025
• c.The Act has no sunset date
• d.January 1, 2030✓

Public Act 101-0357, signed August 9, 2019, updated the Act and extended it to January 1, 2030. Cite: Public Act 101-0357.

Under the 2025 amendments, what changed about the Illinois managing broker license examination?

• a.It need no longer include a national brokerage law portion✓
• b.It was waived for applicants holding five years of experience
• c.It gained a mandatory section devoted to fair housing law
• d.It became an oral examination conducted before the Board

Public Act 103-1039 removed the requirement that the managing broker examination include a portion focused on national brokerage laws and practices, leaving the exam focused on Illinois supervisory content. Cite: Public Act 103-1039, effective 1/1/2025.

Which body hears disciplinary matters and reports on them under the Illinois Real Estate License Act?

• a.The grievance committee of the state REALTORS association
• b.The circuit court for the county where the office is located
• c.The Real Estate Administration and Disciplinary Board✓
• d.The Illinois Commerce Commission's professional panel

The Real Estate Administration and Disciplinary Board issues a report in disciplinary proceedings, and the Act permits that report to be served by electronic mail on the person subject to the proceeding. Cite: 225 ILCS 454/20-64.

May IDFPR serve a citation or notice of an investigation and hearing by electronic mail?

• a.No, personal service on the licensee is required in every case
• b.Only where the licensee has consented to e-mail service in writing
• c.Only in matters that involve special account or escrow violations
• d.Yes, on the accused and their managing and sponsoring brokers✓

The Act expressly allows electronic mail to serve a citation or provide notice of investigations and a hearing to the accused and to their designated managing broker and sponsoring broker. Cite: 225 ILCS 454/20-20.1 and 20-60.

A sponsoring broker offers sellers a plan under which the brokerage will purchase the home if it does not sell. What does the Illinois Act call this, and who may be disciplined for a non-compliant version?

• a.A net listing, and only the seller may bring a complaint
• b.A guaranteed sales plan, and licensed and unlicensed alike✓
• c.A buyer representation agreement, to which no discipline attaches
• d.An option contract, handled only by the Department's civil side

The Act addresses guaranteed sales plans and permits discipline of licensed and unlicensed individuals who offer one that does not comply with the Act. Cite: 225 ILCS 454/20-20(a)(29).

An Illinois applicant makes a false statement of material fact on a license application. Which provision does this implicate?

• a.The special account provisions found in Article 20 of the Act
• b.The good moral character provisions of Section 5-25✓
• c.The advertising and licensee-status rules of Section 10-30
• d.The sponsorship notice requirements found in Section 5-40

A false statement of material fact on an application goes to good moral character under Section 5-25, which also lists aggravating and extenuating circumstances the Department must consider where an applicant has had a license revoked or has certain criminal convictions. Cite: 225 ILCS 454/5-25.

A sponsoring broker fails to timely provide sponsorship or termination information to the Department. What is the result?

• a.It is excused if the licensee also failed to report
• b.It is an enumerated ground for discipline✓
• c.It is a fee-only violation with no discipline
• d.It voids the affected transactions

Failure by a sponsoring broker or licensee to timely provide proof of sponsorship or termination information is an enumerated ground for discipline, and it pairs with the 24-hour notice duty. Cite: 225 ILCS 454/20-20(a)(20).

A licensee forms a business entity to receive compensation from the sponsoring broker. Who may own it?

• a.Any family member of the licensee who is not otherwise licensed
• b.Any group of investors, whether or not they hold a license
• c.The licensee alone, or with a spouse licensed under the same broker✓
• d.The sponsoring broker and the licensee as equal joint owners

Such an entity must be owned solely by the licensee, or by the licensee together with the licensee's spouse, and then only if the spouse is also licensed and sponsored by the same sponsoring broker. Cite: 225 ILCS 454, sponsorship and compensation provisions as amended by PA 101-0357.

The Illinois Act permits the Department to adopt rules addressing which emerging business model?

• a.Virtual real estate practice✓
• b.Auction-only brokerages
• c.Cooperative housing brokerages
• d.Timeshare resale brokerages

The Act recognizes the growing trend toward the virtual real estate business model and authorizes the Department to adopt rules to regulate the operation of a virtual real estate practice. Cite: 225 ILCS 454/5-45(f).

Which Illinois license authorizes leasing residential real estate without holding a broker license?

• a.Property manager registration
• b.Residential leasing agent license✓
• c.Limited broker permit
• d.Rental agent certificate

Illinois issues a residential leasing agent license for those who lease residential real property, distinct from the broker and managing broker licenses. Cite: 225 ILCS 454, Article 5.

Which agency division administers the Illinois Real Estate License Act day to day?

• a.The Illinois Department of Revenue
• b.The Office of the Secretary of State
• c.The Illinois Housing Development Authority
• d.The IDFPR Division of Real Estate✓

The Division of Real Estate within the Illinois Department of Financial and Professional Regulation administers licensing, education, and enforcement under the Act. Cite: IDFPR Division of Real Estate; 225 ILCS 454.