Illinois Real Estate Broker Exam 10-Question Diagnostic Practice Test

Q: How many questions are on the Illinois real estate broker exam, and what is the passing score?

The Illinois real estate broker licensing exam administered by PSI consists of 140 multiple-choice questions divided into two sections: a 100-question National Core portion (150 minutes) and a 40-question Illinois State Law portion (60 minutes), plus 5 to 10 unscored pretest items (total testing time: 3.5 hours / 210 minutes). To pass, you must score at least 70% on the National section (70/100) and at least 75% on the Illinois State section (30/40). Both sections must be passed independently.

Q: How hard is the Illinois real estate broker exam?

The Illinois Department of Financial and Professional Regulation (IDFPR) broker exam has a first-time pass rate between 52% and 62%. The Illinois State portion is challenging because Illinois has abolished common law agency, operating under codified Article 15 statutory agency, designated agency defaults, dual agency two-step consent, Notice of No Agency rules, 5-year escrow record retention, and complex judicial foreclosure redemption calendars.

Q: How much does the Illinois real estate broker exam cost?

The PSI exam fee is $55 per attempt (whether taking both portions or a single retake). Upon passing, the IDFPR initial broker license application fee is $125. Candidates must also complete 75 hours of approved prelicensing education ($300 to $650). Additionally, newly licensed Illinois brokers must complete 45 hours of post-licensing coursework prior to their first biennial license renewal.

Q: What is the difference between a Broker and a Managing Broker in Illinois?

In Illinois, the entry-level license is "Broker" (the state abolished the traditional salesperson license in 2011). All brokers must be sponsored by an employing broker entity. A "Managing Broker" license requires 2 years of active broker experience within the previous 3 years, 45 hours of advanced managing broker coursework, and passing the PSI managing broker exam. A Designated Managing Broker is the specific individual appointed to oversee operations, associate supervision, and escrow accounts.

Q: What is Statutory Designated Agency in Illinois?

Under RELA § 15-50, Designated Agency is the statutory default in Illinois. Sponsoring brokers assign specific associated licensees to represent designated clients. Because representation attaches exclusively to the designated licensee, two agents within the same brokerage firm representing opposing buyer and seller do NOT create dual agency, and there is no firm-wide imputed knowledge between them.

Q: What is the Notice of No Agency and when must it be given?

Under 225 ILCS 454/15-35, a licensee must provide a written "Notice of No Agency" to an unrepresented consumer before the consumer discloses any confidential information (such as financial capacity, personal motivation, or negotiating strategy), or before the licensee prepares or shows an offer. This informs the consumer that the licensee represents the client (e.g. seller) and will disclose any shared information.

Q: How does Dual Agency work in Illinois?

Dual agency is strictly regulated under RELA § 15-45. It is permitted only with two separate written consents: 1) Initial written consent using the statutory "Disclosure and Consent to Dual Agency" form, signed prior to or at the time of entering the agency agreement; and 2) A written confirmation of consent signed by both parties at or before the execution of the purchase contract. A dual agent must remain neutral and cannot disclose confidential pricing, terms, or personal motivations.

Q: What is an Illinois Land Trust and why is it used?

An Illinois Land Trust is a specialized trust where real estate legal and equitable title is held by a corporate trustee (such as a bank or trust company), while the beneficiary retains a personal property interest and the "power of direction" to control management, sale, and leasing. This structure provides complete privacy of ownership (beneficiary names are not on county deeds), avoids probate upon death, and protects the real estate from individual judgment liens against beneficiaries.

Q: What are the requirements of the Illinois Residential Real Property Disclosure Act?

Under 765 ILCS 77/, sellers of 1-to-4 residential units must complete and deliver a 24-question disclosure form regarding material defects to the prospective buyer prior to contract execution. If delivered after offer acceptance, or if amended before closing disclosing a material defect, the buyer has an absolute statutory right to rescind the purchase contract within 3 business days of receipt and recover all earnest money.

Q: What is the Real Estate Recovery Fund in Illinois?

Governed by RELA § 25-35, the Recovery Fund pays out up to $50,000 per transaction/claim, with a $100,000 lifetime aggregate cap per licensee, for unpaid judgments against licensees for fraud, misrepresentation, or deceit. Payout triggers AUTOMATIC TERMINATION of the licensee's license. To re-license, the individual must repay the Fund in full plus statutory interest. IDFPR maintains a statutory minimum balance of $750,000.

Question 1

Under Article 15 of the Illinois Real Estate License Act of 2000 (RELA), how does state law govern the legal relationship and duties between real estate licensees and consumers?

Accepted Answer

B. Common law agency principles are statutorily abolished; licensees owe specifically codified statutory duties including performance, loyalty, confidentiality, accounting, and reasonable care.

Answer

A. Common law agency doctrines govern all transactions unless a written waiver is filed with the IDFPR.

Answer

C. Licensees are classified as strict fiduciary trustees subject to the Illinois Probate and Trust Act.

Answer

D. Agency representation is strictly prohibited in residential sales; all brokers act as non-agent facilitators.

Question 2

In a Chicago brokerage, Broker Associate Sarah lists a property for a seller. Broker Associate David, working under the same sponsoring broker in the same office, represents a prospective buyer who submits an offer on Sarah's listing. Under Illinois designated agency law, does this internal transaction create a dual agency relationship for Sarah and David?

Accepted Answer

B. No; Illinois designates individual licensees as statutory agents for their respective clients by default, and there is no firm-wide imputed knowledge between associated licensees.

Answer

A. Yes, because both licensees hold active licenses sponsored by the same broker corporation.

Answer

C. Yes, unless the sponsoring broker immediately surrenders their commission to the IDFPR Recovery Fund.

Answer

D. No, but only if Sarah and David work in separate branch offices located in different counties.

Question 3

When an individual licensee in Illinois acts as a dual agent representing both the buyer and the seller in the same transaction, what two statutory requirements must be satisfied regarding client disclosures and consent?

Accepted Answer

A. The licensee must obtain written informed consent on the statutory Disclosure and Consent to Dual Agency form prior to acting, and must obtain a second written confirmation of consent from both parties at the time the purchase contract is executed.

Answer

B. The licensee only needs oral consent recorded over the phone at the initial open house.

Answer

C. The licensee must submit a formal petition to the Real Estate Administration and Disciplinary Board 14 days prior to closing.

Answer

D. The licensee must waive all brokerage commissions and charge only an hourly consulting fee.

Question 4

A listing broker in Naperville is hosting an open house. An unrepresented consumer attends and begins explaining their personal financial hardship, pending divorce proceedings, and maximum budget for buying a home. What mandatory statutory action was the broker required to take BEFORE the consumer disclosed this confidential information?

Accepted Answer

A. Deliver a written Notice of No Agency explaining that the broker represents the seller and will disclose all shared information to the seller.

Answer

B. Immediately execute a dual agency consent agreement on behalf of the sponsoring broker.

Answer

C. Advise the consumer to obtain a pre-approval letter from a state-chartered Illinois bank.

Answer

D. Collect an earnest money deposit check before allowing the consumer to tour the master bedroom.

Question 5

A consumer in Rockford secures a $75,000 final fraud judgment against a licensed Illinois real estate broker. After the judgment remains unsatisfied through normal civil execution, the consumer petitions the IDFPR Real Estate Recovery Fund. What is the maximum statutory payout for this single transaction, and what automatic administrative sanction is levied against the broker's license upon payment?

Accepted Answer

A. Maximum payout is $50,000 per transaction, and the broker's license is automatically terminated on the effective date of payment.

Answer

B. Maximum payout is $75,000 per transaction, and the broker is suspended for 90 days.

Answer

C. Maximum payout is $100,000 per transaction, and the sponsoring broker's corporation is dissolved.

Answer

D. Maximum payout is $25,000 per transaction, and the broker must complete 12 hours of remedial CE.

Question 6

A designated managing broker in Peoria maintains an escrow account for client earnest money deposits. Under the Real Estate License Act of 2000, what are the statutory requirements for bank reconciliation and record retention of escrow accounts?

Accepted Answer

A. The broker must perform a monthly written bank reconciliation within 10 days of receiving the bank statement, and retain all escrow and transaction records for at least 5 years.

Answer

B. The broker must reconcile quarterly and retain records for 2 years.

Answer

C. The broker must submit monthly ledger copies to the IDFPR and retain records for 7 years.

Answer

D. The broker must conduct annual reconciliations and retain records for 3 years.

Question 7

A seller in Springfield accepts an offer to purchase a single-family home on Monday, but neglects to deliver the completed 24-question Illinois Residential Real Property Disclosure report until Thursday. If the report discloses a material foundation defect, what statutory remedy does the buyer hold under the Act?

Accepted Answer

A. The buyer has the statutory right to terminate the purchase agreement and receive a full refund of earnest money within 3 business days of receiving the late disclosure report.

Answer

B. The buyer must proceed to closing but may sue the seller for triple damages in the Circuit Court within 30 days.

Answer

C. The buyer has no remedy because mutual contract acceptance waives all disclosure delivery defects.

Answer

D. The buyer must file a formal complaint with the Illinois Department of Insurance.

Question 8

An investor acquires a multi-family apartment building in Chicago through an Illinois Land Trust. Under Illinois real property law, what is the legal character of the trustee's title versus the beneficiary's interest in the trust?

Accepted Answer

A. The trustee holds both legal and equitable title to the real estate, while the beneficiary holds a personal property interest with the power of direction.

Answer

B. The beneficiary holds fee simple legal title, while the trustee holds an equitable easement.

Answer

C. The trust is registered as a general partnership, making both parties tenants in common.

Answer

D. The trustee holds only equitable title, and the beneficiary must be publicly identified on all county deed recordings.

Question 9

A residential property in Cook County sells for $300,000, and the buyer assumes no existing mortgage. What is the statutory base transfer tax imposed jointly by the State of Illinois and the county (excluding local municipal transfer stamps)?

Accepted Answer

A. $450 total base tax ($300 state tax at $0.50 per $500 of value + $150 county tax at $0.25 per $500 of value).

Answer

B. $3,000 total tax based on a uniform 1% state assessment.

Answer

C. $150 total tax levied exclusively by the county clerk.

Answer

D. $900 total tax calculated at $1.50 per $500 of equity transferred.

Question 10

Under the Illinois Mortgage Foreclosure Law (IMFL), foreclosure must proceed strictly through judicial court action. Following the service of summons on a defaulting borrower, what are the statutory timeframes for loan reinstatement versus the equitable right of redemption?

Accepted Answer

A. The borrower has a 90-day statutory right of reinstatement to cure the arrearage, and an equitable right of redemption extending 7 months from service of summons (or 3 months from judgment, whichever is later).

Answer

B. The borrower has 30 days to reinstate and 12 months post-sale statutory redemption.

Answer

C. The borrower has 10 business days to reinstate, and zero right of redemption under any circumstance.

Answer

D. The borrower has 180 days to reinstate, and the equitable right of redemption lasts indefinitely until eviction.

Illinois Real Estate Broker Practice Exam & 2026 IDFPR License Guide

4 Legal Concepts That Catch Candidates on the IL Broker Exam

Abolition of Common Law Agency (RELA Article 15)

Designated Agency Default & Notice of No Agency

Recovery Fund $50k/$100k Caps & License Termination

5-Year Escrow Retention & 10-Day Monthly Reconciliation

The 3 Tested IDFPR Illinois State Law Domains

Licensing Requirements, Governance & IDFPR Regulation

Illinois Brokerage Operations, Agency Relationships & Advertising

Illinois Real Estate Law, Disclosures, Leases & Foreclosure

Free 10-Question Illinois Diagnostic Test

Under Article 15 of the Illinois Real Estate License Act of 2000 (RELA), how does state law govern the legal relationship and duties between real estate licensees and consumers?

How to Get Your Illinois Real Estate Broker License in 5 Steps

75-Hour Prelicensing

Pass PSI Exam

Find Sponsoring Broker

Submit IDFPR Application

45-Hr Post-Licensing

Illinois Real Estate Broker Exam FAQs

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