Laws & Rules Flashcards
(31 cards)
What are the main ways that license laws ensure consumer protection?
They establish requirements, define activities, and set standards.
Sally’s a first-time homebuyer. She’s a little nervous about finding a good real estate agent—she’s read about a lot of scams out there. What exists in real estate with the main purpose of protecting consumers like Sally?
License laws
New Illinois licensee Sara is creating her first print real estate ad. She’s included her name, her email address, and her main office telephone number in it. What’s missing from her ad?
Her broker’s or brokerage’s name
Bert is a sponsored broker in Illinois who’s selling his own house. Since he’s acting as his own broker, which of these rules must he follow?
He can use a For Sale by Owner yard sign, but it must say “agent owned.”
First Choice Realty is a favorite among new licensees because it has a strong training program. Who has the ultimate legal responsibility for this program at First Choice?
Jerilyn, the sponsoring broker
Gregory is a salesperson at Gardner Homes. Linda is his sponsoring broker. Which of the following best describes what is legally required regarding Gregory’s license?
Linda has Gregory’s license available for viewing
The written agreement with a client/customer establishes how the compensation is to be made and also establishes all of the following EXCEPT for which of these?
The broker’s split of the commission
Illinois broker Antonio was thrilled to close on a listing that had been on the market for six months. He made the sale based on a referral. Antonio can pay a referral fee to which of the following people who provided the referral?
His licensed sales assistant
Adam is an Illinois licensee that works for rental finding service. He’s working with a landlord, Trendmaker Apartments. He just located a tenant for one of the apartments, and the tenant has signed a lease. Which of these statements is true?
Upon entering into a lease contract, the tenant must be provided with specific information regarding the unit and the owner.
Larry created a land trust agreement naming Renken Properties, Inc., as the trustee and himself as the beneficiary. Which of these statements is true?
Larry retains complete control of the property during the trust’s term.
Which one of these best describes the purpose of homestead laws?
To protect a portion of a homeowner’s ownership interest against some types of liens
Which of these about the Illinois Timeshare Lien and Security Interest Act is true?
This act permits timeshare managers to place liens against timeshare interests for unpaid assessments.
Which of these is an example of commingling?
Cynthia deposited her client’s earnest money check into the firm’s operating account.
Annette recently moved out of the 18-unit apartment building she’d been in for two years. She was careful to leave her apartment clean and in good repair when she left, but the landlord retained her security deposit anyway. He also refused to respond to her demands to return it. Does Annette have any options left?
Yes. She can file suit in small claims court.
Which of the following statements about document delivery, storage, and retention is NOT true?
Documents prepared and signed electronically must be printed and stored in hard-copy format for the full retention period.
Sam is a salesperson at Happy Home Realty doing his monthly file and desk cleanup. He is packing up closed transaction files to send to the firm’s records manager. He’s permitted to send all the files EXCEPT ______ to off-site storage under a five-year retention plan.
The previous year’s escrow account ledger
Nicholas is working with a buyer client who wants a special clause added to his purchase contract. How should Nicholas handle this?
Instruct the client to hire an attorney to draft the clause.
Which of the following is an unauthorized practice of law?
Interpreting the legal consequences of a client’s actions
Carlene sold her house to Todd for $492,500. She lives in in a city that charges a $.10 transfer tax. How much transfer tax will be owed on this transaction?
$837.25
Transfer taxes in Illinois are calculated on every $500 (or portion thereof) of the sales price. The state charges a $.50 tax, each county charges $.25, and various municipalities and other government entities may also impose a transfer tax. Carlene’s city government charges a $.10 tax, so her total transfer tax rate is $0.85 on a sale of $492,500. To calculate the tax owed, divide the sales price of $492,500 by $500, then multiply by the tax rate. $492,500 ÷ $500 = 985 × .85 = $837.25.
Which of the following is true of most government or government-sponsored affordable housing loan programs?
They target mainly first-time homebuyers and low- to moderate-income borrowers.
Marcus died intestate (without leaving a will). His wife, Elaine, and two children, Patrick and Rhonda, are in the line of succession to inherit his estate. According to Illinois law, how will the property be distributed?
Elaine receives 50% and the children each receive 25%.
Carissa died intestate (without leaving a will). She has no spouse and no children. Her father preceded her in death. Her mother and two sisters are alive. Carissa’s estate is worth $500,000. How will the estate be distributed?
Carissa’s mother gets 50% and her siblings split the remaining 50% equally.
Citywide Development is planning a new subdivision called Leydan Rock. Each lot will be two acres, and the entire subdivision will include 32 residential lots. Which of these statements about this subdivision and the Illinois Plat Map Act is FALSE?
Citywide must get the subdivision plat commissioned and certified by the clerk and recorder of the county where the subdivision is located.
Joe’s a developer in Illinois who recently purchased land from another developer, part of which is a recorded subdivision named Blue Acres. Although Joe plans to subdivide the undeveloped lots within Blue Acres further, no additional streets or access points will be required. The other portion of land is an undeveloped four acres that Joe plans to develop into a subdivision named Green Acres. Under the Illinois Plat Act, which of the following statements is true?
Joe must certify and record only Green Acres through the Illinois Registered Land Surveyors Association.
