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Illinois Real Estate Managing Broker Examination — State Portion — Information & Free Practice

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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

Related license preparation

This examination may be required or accepted as an alternative, depending on the license and application pathway.