Illinois Real Estate Managing Broker Examination — State Portion — Information & Free Practice
US-IL · Examination information
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Illinois Real Estate Managing Broker Examination — State Portion
- Provider
- PSI Services LLC
- Format
- Computer-delivered examination
- Exam questions
- 50 scored questions
- Time limit
- 90 minutes
- Passing score
- 75%
Examination outline
I. Licensing Requirements (5%)
- A. Activities requiring a license
- B. License exemptions
- C. Types of licenses
- C. Types of licenses — 1. Broker
- C. Types of licenses — 2. Managing Broker
- C. Types of licenses — 3. Residential Leasing Agent
- C. Types of licenses — 4. Instructor (pre-license and continuing education)
- D. Eligibility for licensing, including sponsorship
- E. Examination
- F. License renewal
- G. Post-licensing and continuing education
- H. Change in address, name, or business information for a licensee
II. Illinois Real Estate License Act (30%)
- A. Agency relationships
- A. Agency relationships — 1. Stigmatized property issues
- A. Agency relationships — 2. Material facts
- B. Advertising
- C. Sponsored licensee/sponsoring broker relationship
- D. Brokerage agreements
- D. Brokerage agreements — 1. Non-exclusive
- D. Brokerage agreements — 2. Exclusive
- D. Brokerage agreements — 2. Exclusive — a. Minimum services
- E. Compensation requirements
- E. Compensation requirements — 1. Contractual obligation
- F. Interference with contracts or agreements
- G. Licensed/Unlicensed assistants
- H. Teams
- H. Teams — 1. Team names
- H. Teams — 2. Supervision
- I. Handling of monies
- I. Handling of monies — 1. Special accounts
- I. Handling of monies — 2. Security deposits
- J. Handling of documents
- K. Disciplinary provisions
- K. Disciplinary provisions — 1. Unprofessional conduct
- L. Comparative market analysis (CMA)/Broker price opinion (BPO) requirements
- M. Purchase contracts and lease agreements
- M. Purchase contracts and lease agreements — 1. Chicago Bar Association et al vs Quinlan and Tyson inc.
- N. Purpose of License Law
III. Additional Illinois Laws and Regulations Affecting Real Estate Practice (15%)
- A. Ownership interests
- A. Ownership interests — 1. Trusts
- A. Ownership interests — 2. Homestead
- A. Ownership interests — 3. Government powers
- A. Ownership interests — 4. Co-ownership
- A. Ownership interests — 5. Condominiums
- A. Ownership interests — 6. Cooperatives
- A. Ownership interests — 7. Ownership by business entities (managing broker only)
- A. Ownership interests — 8. Deed restrictions and subdivision covenants, conditions and restrictions (CC&Rs) (managing broker only)
- B. Performing activities exceeding the scope of real estate licensing
- B. Performing activities exceeding the scope of real estate licensing — 1. Law
- B. Performing activities exceeding the scope of real estate licensing — 2. Securities
- B. Performing activities exceeding the scope of real estate licensing — 3. Illinois Business Broker Act
- B. Performing activities exceeding the scope of real estate licensing — 4. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice (managing broker only)
- C. Transfer taxes
- D. Transfer of title
- D. Transfer of title — 1. Involuntary vs voluntary transfer
- D. Transfer of title — 2. Title insurance policies and title searches (Managing Broker only)
- D. Transfer of title — 2. Title insurance policies and title searches (Managing Broker only) — a. Owner policy and lender policy (Managing Broker only)
- D. Transfer of title — 3. Marketable and insurable title (Managing Broker only)
- D. Transfer of title — 4. Settlement procedures (closing) and parties involved (Managing Broker only)
- D. Transfer of title — 5. Special issues in transferring foreclosed properties (Managing Broker only)
- D. Transfer of title — 6. Special issues in short sale transactions (Managing Broker only)
- D. Transfer of title — 7. Special issues in probate transactions (Managing Broker only)
- E. Legal description/Plat Act
- F. Real estate taxes and exemptions
- G. Illinois Human Rights Act
- G. Illinois Human Rights Act — 1. Fair Housing advertising rules
- H. Illinois Assistance Animal Integrity Act
- I. Illinois Landlord Tenant Act
- J. Commercial Broker Lien Act
- K. Radon Resistant Construction Act
- L. Effect of the Statute of Frauds (managing broker only)
IV. Disclosures (10%)
- A. Agency
- A. Agency — 1. Designated agencies
- A. Agency — 1. Designated agencies — a. Seller/landlord
- A. Agency — 1. Designated agencies — b. Buyer/tenant
- A. Agency — 1. Designated agencies — c. Dual
- A. Agency — 2. Notice of no agency relationship
- A. Agency — 3. Prohibition against transactional broker and facilitator
- A. Agency — 4. Contemporaneous offers
- B. Licensee status direct/indirect interest
- C. Compensation sources
- D. Property disclosure
- D. Property disclosure — 1. Residential Real Property Disclosure Act
- D. Property disclosure — 2. Material defects
- E. Environmental and other disclosures
- E. Environmental and other disclosures — 1. Radon
- E. Environmental and other disclosures — 2. Lead based paint
- E. Environmental and other disclosures — 3. Mine subsidence
- E. Environmental and other disclosures — 4. Underground storage tanks
- E. Environmental and other disclosures — 5. Flooding (landlords)
V. Managing Broker/Instructor (ONLY) Topics (40%)
- A. Sponsoring broker/designated managing Broker responsibilities
- A. Sponsoring broker/designated managing Broker responsibilities — 1. Training
- A. Sponsoring broker/designated managing Broker responsibilities — 2. Supervision
- A. Sponsoring broker/designated managing Broker responsibilities — 2. Supervision — a. Specific duties related to newly licensed brokers
- A. Sponsoring broker/designated managing Broker responsibilities — 2. Supervision — b. Renewal of sponsored licensees
- B. Special accounts
- B. Special accounts — 1. Accounting requirements
- B. Special accounts — 1. Accounting requirements — a. Timely deposits and disbursements
- B. Special accounts — 1. Accounting requirements — b. Required documentation
- B. Special accounts — 2. Prohibited acts
- B. Special accounts — 3. Escrow disbursement
- B. Special accounts — 4. Escrow disputes
- C. Examination of records
- C. Examination of records — 1. Record retention
- C. Examination of records — 2. Compliance examination
- D. Corporation/partnership/limited liability company licensure and renewal
- E. Licensure by endorsement
- F. Real Estate Recovery Fund
- G. Rental finding services
- H. Rental property management
- I. Virtual and Branch offices
- J. Real estate calculations
- J. Real estate calculations — 1. Income analysis approach to property valuation and appropriate uses
- J. Real estate calculations — 2. Seller’s net proceeds
- J. Real estate calculations — 3. Buyer funds needed at closing
- J. Real estate calculations — 4. Real property tax and other prorations
- J. Real estate calculations — 5. Real property transfer fees
- J. Real estate calculations — 6. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
- J. Real estate calculations — 7. Equity
- J. Real estate calculations — 8. Loan-to-Value ratio
- J. Real estate calculations — 9. Discount points and loan origination fees
- K. Financing and lending
- K. Financing and lending — 1. Owner financing (for example, installment or land contract/contract for deed)
- K. Financing and lending — 2. Real Estate Settlement Procedures Act (RESPA), including kickbacks
- K. Financing and lending — 3. Truth-in-Lending Act (Regulation Z), including advertising
- K. Financing and lending — 4. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures)
- K. Financing and lending — 5. Government loans (e.g., FHA, VA, USDA)
- K. Financing and lending — 6. Loan features, such as prepayment penalties and balloon payments
- L. Contract issues
- L. Contract issues — 1. Void, voidable and unenforceable contracts
- L. Contract issues — 2. Termination, rescission, breach, and cancellation of contracts
- L. Contract issues — 3. Nature and use of option agreements
- L. Contract issues — 4. Notice, delivery, acceptance and execution of contracts
- L. Contract issues — 5. Proper handling of multiple offers and counteroffers
- L. Contract issues — 5. Proper handling of multiple offers and counteroffers — a. Escalation clauses
- L. Contract issues — 5. Proper handling of multiple offers and counteroffers — b. Disclosure and confidentiality
- L. Contract issues — 6. Addenda and amendments to contracts
- L. Contract issues — 7. Lease-purchase agreements
- L. Contract issues — 8. Seller concessions
- L. Contract issues — 8. Seller concessions — a. Compensation and brokerage fees
- L. Contract issues — 8. Seller concessions — b. Financing/Closing costs
- L. Contract issues — 8. Seller concessions — c. Repairs and other concessions
- L. Contract issues — 9. Real estate tax proration issues
- L. Contract issues — 10. Letters of intent
- L. Contract issues — 11. Types of leases
- M. Property management issues
- M. Property management issues — 1. Fair Credit Reporting Act
- M. Property management issues — 2. Procurement and qualification of prospective tenants
- M. Property management issues — 3. Property manager responsibility for maintenance, improvements, reporting and risk management
- M. Property management issues — 4. Handling landlord and tenant funds; trust accounts, reports and disbursements
- M. Property management issues — 5. Provisions of property management contracts
- N. Antitrust laws and types of violations
- O. Employment law
- O. Employment law — 1. Employees or independent contractors and governing rules
Examination sources
- IDFPR Division of Real Estate Candidate Information Booklet
p. 14, state-specific outline
- IDFPR Division of Real Estate Candidate Information Booklet
p. 15, state-specific outline
- IDFPR Division of Real Estate Candidate Information Booklet
p. 16, state-specific outline
- IDFPR Division of Real Estate Candidate Information Booklet
p. 17, state-specific outline
- IDFPR Division of Real Estate Candidate Information Booklet
p. 14, section I, managing-broker published allocation
- IDFPR Division of Real Estate Candidate Information Booklet
p. 14, section II, managing-broker published allocation
- IDFPR Division of Real Estate Candidate Information Booklet
p. 15, section III, managing-broker published allocation
- IDFPR Division of Real Estate Candidate Information Booklet
p. 15, section IV, managing-broker published allocation
- IDFPR Division of Real Estate Candidate Information Booklet
p. 16, managing-broker additional scope section V
- IDFPR Division of Real Estate Candidate Information Booklet
p. 11, Examination Summary Table — Managing Broker state passing score
- IDFPR Division of Real Estate Candidate Information Booklet
p. 11, Managing Broker state item count and allotted minutes
- IDFPR Division of Real Estate Candidate Information Booklet
p. 11, Managing Broker state point count and minutes unit
- IDFPR Division of Real Estate Candidate Information Booklet
p. 11, Managing Broker row name continuation
- IDFPR Division of Real Estate Candidate Information Booklet
p. 10, Taking the Examination by Computer
- IDFPR Division of Real Estate Candidate Information Booklet
p. 7, Re-taking a Failed Portion
- IDFPR Division of Real Estate Candidate Information Booklet
p. 3, Examination scheduling and registration
Related license preparation
This examination may be required or accepted as an alternative, depending on the license and application pathway.