This free Illinois real estate broker exam study guide covers both portions of the Illinois licensing exam — the Illinois state-specific law enforced by the and the national/general principles tested across the country.[1] We teach the Illinois law first, starting with the rule most candidates miss: in Illinois the entry-level license is the Broker, not a “salesperson.”
You need 75% to pass, and the exam has a national portion and an Illinois portion.[2] It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions.
Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our Illinois practice questions and flashcards. Two areas reward the most study time on the state side: IDFPR license law and Illinois agency, escrow, and disclosure.
Illinois Real Estate Broker Exam Snapshot
| Detail | Illinois Broker exam |
|---|---|
| Regulator | Illinois Department of Financial and Professional Regulation (IDFPR), Division of Real Estate |
| Entry-level license | Broker (no 'salesperson' since 2011); Managing Broker is the supervisory tier |
| Exam portions | National/general portion + Illinois state-specific portion |
| Passing score | 75% (roughly three-quarters of first-time takers pass) |
| Pre-license education | 75 hours — 60 hours Real Estate Topics + 15 hours Applied Real Estate Principles |
| Post-license education | 45-hour program before the first renewal |
| License term & CE | Two-year cycle (renew April 30, even years); 12 hours CE per renewal (6 Core + 6 elective) |
| Sponsorship | A Broker must be sponsored by a sponsoring broker to practice |
Confirm the current question counts, the testing vendor, fees, and education rules with IDFPR before you test — Illinois updates its requirements periodically.[1][2] The weighting below reflects how the Illinois state portion is built; license law and the agency, escrow, and disclosure rules dominate it:
Illinois does not publish a fixed public item count the way some states do, so treat the percentages as a planning guide drawn from the License Act’s structure.[2] This guide teaches the Illinois state law first, then all eight national content areas, each ending in a checkpoint quiz.
You must pass both portions; roughly three-quarters of first-time candidates pass. Confirm current counts and the testing vendor with IDFPR.
1 · IDFPR, the License Act & License Tiers (Illinois)
The heart of the Illinois portion. Who regulates real estate in Illinois, the unique two-tier license structure (with no salesperson), how you become and stay licensed, and the Recovery Fund that protects the public.[2]
Illinois real estate law flows from the statute to the rules to the agency (IDFPR) that enforces them. Note: there is no separate “Real Estate Commission” in Illinois.
- Real Estate License Act of 2000 (225 ILCS 454)Illinois's real estate statute, passed by the General Assembly — it governs licensing, agency, escrow, and discipline, and abolished the 'salesperson' license.
- Administrative Rules (68 Ill. Adm. Code 1450)Rules adopted to implement the Act — education, escrow handling, advertising, and professional conduct.
- IDFPR — Division of Real EstateThe Illinois Department of Financial and Professional Regulation licenses and regulates real estate licensees through its Division of Real Estate.
- Real Estate Administration & Disciplinary BoardA 15-member board (12 licensees + 3 public members) that advises IDFPR and recommends discipline to the Secretary.
IDFPR & the Real Estate License Act of 2000
The , through its , administers the (225 ILCS 454). Illinois has no separate “Real Estate Commission” — IDFPR issues licenses, investigates complaints, and disciplines licensees. A 15-member advises IDFPR and recommends discipline.
Broker vs. Managing Broker (No Salesperson)
This is the most-tested Illinois terminology point. Since 2011, Illinois has no “salesperson” license. The entry-level license is the ; the supervisory, upper tier is the . Watch for “salesperson” as a distractor answer — it is not an Illinois license category.
The most tested Illinois terminology: the entry-level license is the Broker(not a “salesperson”), and the supervisory tier above it is the Managing Broker.
- Broker — the ENTRY-LEVEL licenseSince 2011, Illinois has NO 'salesperson' license. The Broker is the first, entry-level license; it requires 75 hours of pre-license education and must be sponsored by a sponsoring broker.
- Managing Broker — the supervisory tierA broker with added education and experience who supervises licensees in one or more offices. This is the upper tier above the entry-level Broker.
“Salesperson” is a common distractor — it is not an Illinois license category.
Illinois Licensing & Education
To be licensed, a Broker applicant completes 75 hours of IDFPR-approved pre-license education — 60 hours of Real Estate Topics + 15 hours of Applied Real Estate Principles — passes the national and Illinois exam portions, and must be at least 18 with a high school diploma or GED.[1] Attorneys admitted by the Illinois Supreme Court are exempt from the course. A newly licensed Broker must complete a 45-hour post-license program before the first renewal, and must always work under a .
- 1 · 75-hour pre-license courseComplete an IDFPR-approved 75-hour Broker course — 60 hours of Real Estate Topics plus 15 hours of Applied Real Estate Principles.
- 2 · Pass the licensing examPass the national/general portion and the Illinois state-specific portion (75% required).
- 3 · Be at least 18 with a diploma/GEDMeet the minimum age and education requirements (attorneys admitted in Illinois are exempt from the course).
- 4 · Find a sponsoring brokerA licensee may not practice unless sponsored — the sponsorship must be in place before working.
- 5 · Apply to IDFPR & activateSubmit the application and fee to IDFPR; the license is issued and activated under the sponsoring broker.
- 6 · 45-hour post-license before first renewalComplete the 45-hour post-license program (three 15-hour courses) before the first license renewal.
A Broker must always work under a sponsoring broker — never independently.
Discipline & the Recovery Fund
The (225 ILCS 454/20-85) compensates a member of the public who wins a court judgment against a licensee for fraud or misrepresentation but cannot collect it. Recovery is capped at \$25,000 per transaction and \$100,000 in aggregate per licensee.[2]When the Fund pays, the licensee’s license is automatically terminated or suspended until the Fund is repaid with interest.
Checkpoint · Area 1 · IDFPR & Illinois License Law
Question 1 of 10
In Illinois, what is the title of the entry-level real estate license that authorizes an individual to perform brokerage services for compensation?
2 · Illinois Agency, Escrow & Disclosure
The most distinctively Illinois material. How designated agency works, how a broker must hold escrow money, the disclosure documents a seller delivers, and the Illinois fair-housing and transfer-tax rules.[3]
Designated Agency & Dual Agency
is Illinois’s default: the is presumed to appoint the sponsored licensee working with a client as that client’s (225 ILCS 454/15-50). One firm can represent both buyer and seller through different designated agents without becoming a dual agent.
— one licensee for both — is legal only with the prior written, informed consent of all clients. like showing property do not, by themselves, create agency.
In Illinois, the sponsoring broker may appoint different designated agents for the buyer and seller in the same transaction — without the firm itself becoming a dual agent.
Dual agency (one licensee for both clients) is allowed only with the prior written, informed consent of all clients.
Escrow Accounts & Commingling
A broker must hold escrow moneys belonging to others — like — in an , separate from personal and business funds, and deposit them by the next business day after the contract is accepted (225 ILCS 454/20-20). The account is non-interest-bearing unless the principals agree in writing otherwise, and is a violation. When earnest money is disputed, the broker keeps it in escrow until a written agreement, court order, or the rules permit release.
Illinois Disclosure Report & Radon
Under the (765 ILCS 77), a residential seller must deliver a report of known .[3] It is a disclosure of actual knowledge — not a warranty and not a duty to inspect. The separately requires the seller to give the buyer, before contract, the Illinois Disclosure of Information on Radon Hazards and the IEMA radon pamphlet.
Illinois requires sellers to reveal known material defects and specific hazards. These are the documents the exam tests most.
The disclosure report covers known defects — it is not a warranty and does not require the seller to inspect.
Illinois Human Rights Act & Transfer Tax
The (775 ILCS 5) governs fair housing in Illinois and adds protected classes beyond the federal seven — including source of income, marital status, sexual orientation, age, military status, and order-of-protection status.[4] On a sale, the is \$0.50 per \$500 of value at the State level (counties may add \$0.25 per \$500), and the seller is primarily responsible.[5]
Checkpoint · Area 2 · Illinois Agency, Escrow & Disclosure
Question 1 of 10
Under the Real Estate License Act of 2000, what is the default agency relationship between a sponsored licensee and a client absent a written agreement to the contrary?
3 · Property, Legal Descriptions & Land Use
National content area.What real property is, the estates and rights an owner can hold, the government’s powers over land, and how land is legally described.[9]
Estates & the Bundle of Rights
is land, everything permanently attached to it (including ), and the . The largest estate is — absolute and inheritable. Use the MARIA tests (Method of attachment, Adaptability, Relationship, Intention, Agreement) to tell a fixture from personal property.
Government Powers & Encumbrances
Even fee simple is limited by four government powers, remembered as PETE: (zoning, codes), (with just compensation), taxation, and . An — a lien, , or deed restriction — limits title.
Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.
Legal Descriptions
Three methods describe land precisely: , the rectangular (government) survey system (townships, ranges, and ), and lot-and-block (common for platted Illinois subdivisions). One is 640 acres and one is 43,560 square feet.
6 mi × 6 mi = 36 sections
1 sq mile = 640 acres
43,560 square feet
Memorize for the exam: 43,560 sq ft/acre and 5,280 ft/mile — these are not provided at the test center.
Checkpoint · Area 3 · Property, Legal Descriptions & Land Use
Question 1 of 10
Which statement best describes the legal classification of growing fruit trees in an orchard versus the apples harvested from those trees and placed in crates?
4 · Ownership, Title Transfer & Recording
National content area. How people co-own property in Illinois, how a deed transfers title, and how recording protects ownership.[9]
Forms of Ownership in Illinois
The key difference is the right of survivorship. has it and needs the four unities; does not, so each share passes by will — and it is Illinois’s default co-ownership form. Illinois also recognizes for a married couple’s homestead, adding survivorship and creditor protection.
| Form | Survivorship? | Who can hold it |
|---|---|---|
| Severalty | N/A — sole owner | One person or entity |
| Tenancy in common | No — passes by will | Any number of co-owners (Illinois default) |
| Joint tenancy | Yes — to survivors | Co-owners with the four unities |
| Tenancy by the entirety | Yes — to the surviving spouse | A married couple's Illinois homestead |
Deeds, Recording & Title Insurance
A deed conveys title from grantor to grantee. The gives the most protection; a gives none. Title passes on delivery and acceptance, not on recording — but recording at the county recorder gives constructive notice and sets priority.
In Illinois, transfer-tax stamps are obtained when the deed is recorded. protects against prior defects.
Checkpoint · Area 4 · Ownership, Title Transfer & Recording
Question 1 of 10
A homebuyer receiving a general warranty deed is told it includes a covenant against encumbrances. Which of the following situations would most directly breach that particular covenant?
5 · Property Value & Appraisal
National content area.What creates value, the three approaches an appraiser uses, and how a licensee’s CMA differs from a formal appraisal.[9]
Value Principles
is the most probable price under fair conditions — an opinion, distinct from the actual sale price. The basis of value is : the legal, possible, feasible, and most profitable use of a site. A helps price a listing; a formal is an impartial USPAP-compliant opinion by a licensed appraiser.
The Three Approaches to Value
An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.
The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.
Checkpoint · Area 5 · Property Value & Appraisal
Question 1 of 10
An appraiser reproduces a building exactly as it stands using the same materials and design. Compared with replacement cost, reproduction cost is best described as which of the following?
6 · Contracts & Agency (National)
One of the largest national areas. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.[9]
Contract Law & Listings
A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable.
| Listing type | Who earns the commission |
|---|---|
| Exclusive right-to-sell | The listing broker — no matter who finds the buyer |
| Exclusive agency | The broker, unless the owner sells it themselves |
| Open listing | Only the broker who actually finds the buyer |
| Net listing | Broker keeps the amount above the seller's set price — a conflict of interest |
Agency & Fiduciary Duties
is a fiduciary relationship between agent and principal. The duties are OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. In Illinois, confidentiality survives the end of the relationship.
Checkpoint · Area 6 · Contracts & Agency (National)
Question 1 of 10
A buyer's broker has located the perfect home for a client under an exclusive buyer agency agreement, but the seller is unrepresented and unwilling to pay any buyer-broker fee. How is the buyer broker most appropriately compensated in this situation?
7 · Real Estate Practice & Fair Housing
National content area. Fair housing, handling client money, and the leasing work a licensee does day to day.[6]
Federal Fair Housing
The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.[6] Illinois’s own broadens this list and is enforced through the Illinois Department of Human Rights. The classic violations are , blockbusting, and redlining.
| Practice | What it is |
|---|---|
| Steering | Guiding buyers toward or away from areas by protected class |
| Blockbusting | Inducing panic selling by claiming a protected class is moving in |
| Redlining | A lender refusing to lend or insure in an area by its makeup |
Trust Funds, Leases & Conduct
A broker must keep client funds — like and security deposits — in the escrow special account; is a violation. Commission rates are always negotiable, and fixing them with competitors is an antitrust violation. A lease conveys the right to use property for a term in exchange for rent (landlord = lessor, tenant = lessee).
Checkpoint · Area 7 · Real Estate Practice & Fair Housing
Question 1 of 10
Why is blockbusting considered especially harmful among prohibited fair-housing practices?
8 · Disclosures & Environmental Issues
National content area, with key Illinois rules. What a seller and agent must reveal, and the environmental hazards the exam expects you to recognize.[8]
Material Facts & Property Disclosure
A — anything that would affect a buyer’s decision or price — must be disclosed, including known . In Illinois the seller uses the for known defects, and must separately give the radon disclosure. The old rule of caveat emptor is now limited by disclosure law.
Environmental Hazards
The most heavily tested federal rule is the : for housing built before 1978, the seller must disclose known lead paint, give the EPA/HUD pamphlet, and (for sales) allow a 10-day inspection window.[8] In Illinois, radon carries its own required disclosure.
| Hazard | What to know |
|---|---|
| Lead-based paint | Pre-1978 housing; federal disclosure + EPA/HUD pamphlet + 10-day test window |
| Radon | Odorless radioactive gas from soil; Illinois requires a radon-hazard disclosure on residential sales |
| Asbestos | Old insulation/flooring; remove or encapsulate to control fibers |
| Mold | Grows in damp areas; may require disclosure and remediation |
| Underground storage tank | Can leak and contaminate soil and groundwater |
Checkpoint · Area 8 · Disclosures & Environmental Issues
Question 1 of 10
Federal law that regulates underground storage tanks is designed primarily to prevent and address which problem?
9 · Financing & Settlement
National content area, with key Illinois differences. The instruments that secure a loan, how Illinois forecloses, the main loan types, and what happens at closing.[7]
Mortgages, Notes & Judicial Foreclosure
Illinois is a state: the borrower keeps title and gives the lender a lien — not a deed of trust. Because of that, foreclosure is , running through the courts under the Illinois Mortgage Foreclosure Law (735 ILCS 5, Art. XV), with statutory redemption rights. The promissory note is the borrower’s promise to repay.
- 1 · Purchase contract & earnest moneyBuyer and seller sign the contract; earnest money goes to the sponsoring broker's escrow special account by the next business day.
- 2 · Attorney review & inspectionIllinois transactions commonly include an attorney-review period and a professional inspection contingency.
- 3 · Loan & mortgageIllinois is a lien-theory MORTGAGE state — the buyer keeps title and gives the lender a lien (not a deed of trust).
- 4 · Closing, transfer tax & recordingFunds are disbursed, transfer-tax stamps are obtained, and the deed is recorded with the county recorder.
Illinois is a lien-theory, mortgage state that uses judicial foreclosure through the courts (735 ILCS 5, Art. XV) — a heavily tested state difference from deed-of-trust states.
Loan Types, Lending Laws & Closing
Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk. Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.[7] At closing, a settlement agent disburses funds, and the deed is recorded.
Checkpoint · Area 9 · Financing & Settlement
Question 1 of 10
A borrower with an adjustable-rate mortgage notices the first-year rate is unusually low and well below the sum of the current index and margin, an inducement offered for the introductory period. This below-market starting rate is commonly called which of the following?
10 · Real Estate Math
Tested on both portions. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, and proration.[2]
Area, Commission & Net
Area of a rectangle is length × width; convert square feet to acres by dividing by 43,560. Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate).
| To find | Formula |
|---|---|
| Commission | Sale price × commission rate |
| Price for a target net | Net ÷ (1 − commission rate) |
| Loan-to-value (LTV) | Loan amount ÷ value (or price) |
| Value (income approach) | Net operating income ÷ capitalization rate |
| Annual property tax | Assessed value × tax rate (or mills × 0.001) |
LTV, Taxes & Proration
is loan ÷ value. splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date. Illinois exam math problems will specify whether to use a 360-day or 365-day year and who owns the closing day.
Checkpoint · Area 10 · Real Estate Math
Question 1 of 10
A commercial property is valued at $1,500,000 using a capitalization rate of 9%. Using the IRV relationship, what annual net operating income does this value imply?
How to Use This Study Guide
A study guide is a map, not the whole territory — pair it with our free Illinois practice questions and flashcards. Because Illinois’s state portion centers on license law and the agency, escrow, and disclosure rules, lead with license law and the Illinois-specific rules, then layer in the national content areas and lock in the math.
- 1
Read a content area here
Work through one area at a time, Illinois law first, then the national portions.
- 2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
- 3
Drill the gaps
Send your weak area straight into the free Illinois practice questions and flashcards.
- 4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.
Illinois Real Estate Concept Questions
Common Illinois and national real estate principles the Broker exam actually tests — covering IDFPR license law, the Broker/Managing Broker tiers, designated agency, escrow, disclosure, the Recovery Fund, transfer tax, and the national content areas. Tap any card for a short, exam-ready answer backed by an official source (IDFPR, the Illinois ILCS, HUD, CFPB, EPA, IRS, or USGS), then test yourself on them as flashcards.
Illinois Real Estate Glossary
Quick definitions for the terms you’ll see most across the Illinois real estate exam:
- Acre
- A unit of land area equal to 43,560 square feet.
- Agency
- A fiduciary relationship in which an agent represents a principal in dealings with third parties.
- Appraisal
- An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
- Broker (Illinois)
- The entry-level Illinois real estate license. Since 2011 Illinois has no 'salesperson' license; a Broker must work under a sponsoring broker and complete 75 hours of pre-license education.
- Bundle of rights
- The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
- Capitalization rate
- The rate of return on an income property: net operating income ÷ value. A higher cap rate implies more risk and lower value.
- Commingling
- Improperly mixing escrow funds belonging to others with the licensee's own or business funds — a violation of the License Act subject to discipline.
- Comparative market analysis (CMA)
- A licensee's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
- Contingency
- A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal contingencies.
- Contract
- A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
- Designated agency
- Illinois's default agency model: the sponsoring broker is presumed to appoint the sponsored licensee working with a client as that client's legal agent (225 ILCS 454/15-50).
- Designated agent
- The individual sponsored licensee named by the sponsoring broker as a client's legal agent, insulating other licensees in the firm from that agency relationship.
- Division of Real Estate
- The unit within IDFPR that handles real estate licensing, investigations, and discipline, headed by a Director appointed by the IDFPR Secretary.
- Dual agency
- Representing both buyer and seller with one licensee in the same transaction; in Illinois, legal only with the prior written, informed consent of all clients.
- Earnest money
- A buyer's good-faith deposit showing serious intent; held in the broker's escrow special account and usually applied to the price at closing.
- Easement
- A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
- Eminent domain
- Government's power to take private property for public use through condemnation, paying the owner just compensation.
- Encumbrance
- Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
- Escheat
- The reversion of property to the state when an owner dies with no will and no legal heirs.
- Escrow special account
- The separate account a broker must use to hold escrow moneys belonging to others; non-interest-bearing by default and never commingled with the broker's own funds (225 ILCS 454/20-20).
- Fair Housing Act
- The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
- Fee simple
- The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
- Fiduciary duties
- The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
- Fixture
- An item of personal property attached to real property so as to become part of it and transfer with the land. The MARIA tests decide whether an item is a fixture.
- General warranty deed
- The deed giving the most protection; the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
- Highest and best use
- The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
- Illinois Department of Financial and Professional Regulation (IDFPR)
- The Illinois state agency that licenses and regulates real estate licensees through its Division of Real Estate, administering the Real Estate License Act of 2000. Illinois has no separate 'Real Estate Commission.'
- Illinois Human Rights Act
- 775 ILCS 5 — Illinois's fair-housing law, enforced by the Illinois Department of Human Rights, adding protected classes beyond the federal seven (e.g., source of income, marital status, order-of-protection status).
- Joint tenancy
- Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
- Judicial foreclosure
- Foreclosure conducted through the courts under the Illinois Mortgage Foreclosure Law (735 ILCS 5, Art. XV), used because Illinois is a mortgage, lien-theory state.
- Latent defect
- A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
- Lead-based paint disclosure
- The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
- Listing agreement
- A contract employing a broker to find a buyer for the owner's property in exchange for compensation.
- Loan-to-value ratio (LTV)
- The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
- Managing Broker
- The supervisory, upper-tier Illinois license. A managing broker has supervisory responsibility for licensees in one or more offices and requires added education and experience.
- Market value
- The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
- Material fact
- A fact that would affect a reasonable buyer's decision to buy or the price they would pay; in Illinois known material defects must be disclosed on the statutory report.
- Metes and bounds
- A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.
- Ministerial acts
- Informational or clerical acts — like showing property or providing factual information — that do not, by themselves, create an agency relationship in Illinois.
- Mortgage (Illinois)
- Illinois's security instrument. Illinois is a lien-theory, mortgage state — the borrower keeps title and gives the lender a lien, and foreclosure is judicial.
- Net operating income (NOI)
- Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
- Police power
- Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
- Proration
- Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
- Quitclaim deed
- A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
- Radon Awareness Act
- The Illinois law requiring a residential seller to give the buyer, before contract, the Disclosure of Information on Radon Hazards and the IEMA radon pamphlet.
- Real Estate Administration and Disciplinary Board
- The 15-member board (12 licensees + 3 public members) that advises IDFPR and recommends discipline to the Secretary (225 ILCS 454/25-10).
- Real Estate License Act of 2000
- 225 ILCS 454 — the Illinois statute governing the licensing and practice of brokers and managing brokers. It abolished the 'salesperson' license effective 2011.
- Real Estate Recovery Fund
- An Illinois fund (225 ILCS 454/20-85) that pays the public for an uncollectible court judgment against a licensee for fraud or misrepresentation; capped at $25,000 per transaction and $100,000 per licensee.
- Real estate transfer tax (Illinois)
- A tax on deeds: the State imposes $0.50 per $500 of value, counties may add $0.25 per $500, and the seller (grantor) is primarily responsible (35 ILCS 200, Art. 31).
- Real property
- Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
- Residential Real Property Disclosure Report
- The statutory form (765 ILCS 77) on which an Illinois residential seller discloses known material defects — a disclosure of actual knowledge, not a warranty.
- RESPA
- The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
- Section (survey)
- One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township in the rectangular survey system.
- Sponsoring broker
- The licensed broker or company under whom an Illinois licensee must work; a licensee may not engage in licensed activity without active sponsorship.
- Statute of frauds
- The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
- Steering
- Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
- Tenancy by the entirety
- An Illinois form of co-ownership available only to a married couple for their homestead, adding right of survivorship and creditor protection.
- Tenancy in common
- Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship — the default co-ownership form in Illinois.
- TILA
- The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
- Title insurance
- A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
Free Illinois Real Estate Exam Study Materials & Resources
Everything you need to prepare for the Illinois real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free Illinois study materials for active recall, timed practice, and last-minute review:
- Illinois Real Estate Practice Test — exam-style questions across the Illinois and national content areas, with explanations.
- Illinois Real Estate Flashcards — active-recall decks for IDFPR law, designated agency, escrow, disclosure forms, fiduciary duties, and math formulas.
Illinois Real Estate Broker Exam Study Guide FAQ
No. Since 2011, Illinois has had no real estate 'salesperson' license. The entry-level license is the Broker, and the upper, supervisory tier is the Managing Broker. The Real Estate License Act of 2000 (225 ILCS 454) abolished the old salesperson category, so 'salesperson' is a distractor answer on the Illinois exam.
The Illinois Department of Financial and Professional Regulation (IDFPR), through its Division of Real Estate, administers and enforces the Real Estate License Act of 2000. Illinois does not have a separate 'Real Estate Commission.' A 15-member Real Estate Administration and Disciplinary Board advises IDFPR and recommends discipline.
Illinois requires 75 hours of IDFPR-approved pre-license education for a Broker: 60 hours of Real Estate Topics plus 15 hours of Applied Real Estate Principles. After licensure, a newly licensed Broker must complete a 45-hour post-license program before the first renewal. Attorneys admitted in Illinois are exempt from the pre-license course.
You need 75% to pass, and the exam has a national/general portion and an Illinois state-specific portion. Roughly three-quarters of first-time candidates pass. Verify the current question counts and testing vendor on the IDFPR website before you schedule.
Designated agency is Illinois's default agency model. Under 225 ILCS 454/15-50, the sponsoring broker is presumed to appoint the sponsored licensee working with a client as that client's legal agent. This lets one firm represent both the buyer and the seller through different designated agents without the firm becoming a dual agent.
Under 225 ILCS 454/20-20, a broker must hold escrow moneys belonging to others — like earnest money — in a special account, separate from personal and business funds, and deposit them by the next business day after acceptance. The account is non-interest-bearing unless the principals agree in writing otherwise; commingling is a violation.
Illinois is a lien-theory, mortgage state: the borrower keeps title and gives the lender a lien through a mortgage, not a deed of trust. Foreclosure is judicial, running through the courts under the Illinois Mortgage Foreclosure Law (735 ILCS 5, Article XV), with statutory redemption rights for the borrower.
Illinois Broker licenses renew on a two-year cycle, with an April 30 deadline in even-numbered years. Each renewal requires 12 hours of continuing education — a 6-hour Core course plus 6 hours of electives, including Sexual Harassment Prevention Training. Confirm current CE rules and fees on the IDFPR website.
Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.
References
- 1.Illinois Department of Financial and Professional Regulation. “Division of Real Estate.” IDFPR (idfpr.illinois.gov). ↑
- 2.Illinois General Assembly. “Real Estate License Act of 2000 (225 ILCS 454).” ilga.gov. ↑
- 3.Illinois General Assembly. “Residential Real Property Disclosure Act (765 ILCS 77).” ilga.gov. ↑
- 4.Illinois General Assembly. “Illinois Human Rights Act (775 ILCS 5).” ilga.gov. ↑
- 5.Illinois General Assembly. “Real Estate Transfer Tax Law (35 ILCS 200, Art. 31).” ilga.gov. ↑
- 6.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
- 7.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
- 8.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
- 9.U.S. Geological Survey. “How is the Public Land Survey System organized?.” USGS. ↑
Sources for the concept answers
Every answer in the Illinois real estate concept questions above is drawn from an authoritative primary source:
- Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS.
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