Determine your answer, then click the arrow to see the correct response.
Which of the Following Is TRUE About the Illinois Homeowner's Protection Act?
A) It allows tenants to break leases without penalty
B) It protects homeowners from discrimination
C) It provides protections against foreclosure for homeowners
D) It regulates home inspections
Correct Answer: C) It provides protections against foreclosure for homeowners
Explanation: The Illinois Homeowner’s Protection Act provides various protections for homeowners facing foreclosure.
What Type of Listing Agreement Allows a Seller To List a Property With Multiple Brokers but Only Pay a Commission to the Broker Who Finds a Buyer?
A) Exclusive Right-to-Sell Listing
B) Exclusive Agency Listing
C) Open Listing
D) Net Listing
Correct Answer: C) Open Listing
Explanation: An open listing allows a seller to list the property with multiple brokers and only pay a commission to the broker who successfully finds a buyer.
What Is the Main Purpose of the Illinois Radon Awareness Act?
A) To regulate the sale of radon testing equipment
B) To require disclosure of radon hazards in real estate transactions
C) To mandate radon testing in all homes
D) To provide funding for radon mitigation programs
Correct Answer: B) To require disclosure of radon hazards in real estate transactions
Explanation: The Illinois Radon Awareness Act requires sellers to provide buyers with a Radon Disclosure Pamphlet and a Radon Testing Guidelines form to inform them of potential radon hazards.
What Is a "Buffer Zone" in Real Estate Terms?
A) A designated area where no construction is allowed
B) An area of land that separates two different land uses
C) A temporary easement for utility companies
D) A zone where property taxes are reduced
Correct Answer: B) An area of land that separates two different land uses
Explanation: A buffer zone is an area of land that separates and provides a transition between different land uses, such as residential and commercial areas.
Which Principle of Value States That the Worth of a Property Is Influenced by the Price of Comparable Properties?
A) Principle of Contribution
B) Principle of Substitution
C) Principle of Progression
D) Principle of Conformity
Correct Answer: B) Principle of Substitution
Explanation: The Principle of Substitution states that the value of a property is determined by the cost of acquiring an equally desirable substitute property that offers similar utility and amenities.
What Is an Easement in Real Estate?
A) A temporary permit to use land for a specific purpose
B) A restriction on the use of property
C) A legal right to use another person’s land for a specific purpose
D) A type of property ownership
Correct Answer: C) A legal right to use another person’s land for a specific purpose
Explanation: An easement is a legal right granted to an individual or entity to use another person’s land for a specific purpose, such as access to utilities or a right-of-way.
What Is “Equity” in Real Estate?
A) The total value of a property
B) The difference between the market value of a property and the amount owed on the mortgage
C) The amount of money required for a down payment
D) The interest rate on a mortgage loan
Correct Answer: B) The difference between the market value of a property and the amount owed on the mortgage
Explanation: Equity in real estate refers to the difference between the current market value of a property and the outstanding amount owed on any mortgages or liens against the property.
In Idaho, What Must a Real Estate Broker Do With Earnest Money Received From a Buyer?
A) Deposit it into a personal bank account
B) Deposit it into a separate, non-interest-bearing trust account
C) Give it directly to the seller
D) Hold it until closing
Correct Answer: B) Deposit it into a separate, non-interest-bearing trust account
Explanation: Idaho law requires that all earnest money deposits be placed into a separate, non-interest-bearing trust account to ensure the funds are properly managed and protected.
An Idaho Real Estate Agent Lists a Property That Was the Site of a Murder. Is the Agent Required To Disclose This Information to Potential Buyers?
A) Yes, it is required by Idaho law
B) No, it is not required by Idaho law
C) Only if the buyer asks directly
D) Only if the murder occurred within the last 5 years
Correct Answer: B) No, it is not required by Idaho law
Explanation: Idaho law does not require the disclosure of stigmatizing events, such as a murder, on the property unless specifically asked by the buyer.
In Idaho, Who Is Responsible for Verifying the Accuracy of the Property’s Legal Description in a Real Estate Transaction?
A) The seller
B) The buyer’s agent
C) The title company
D) The county assessor
Correct Answer: C) The title company
Explanation: The title company is responsible for verifying the accuracy of the property’s legal description as part of the title search and insurance process.