Learn: Illinois Real Estate Licensing, Property Rights & Brokerage

What is the market for real estate best described as?

a local market

What are the five classifications of uses of real estate properties?

residential, commercial, industrial, agricultural, and special purpose

What factors affect the demand side of the real estate market?

population, demographics, and wage level

What tends to happen to prices when the supply of real estate decreases over longer periods?

prices tend to rise

Who owns the subsurface and air rights to the land?

the owner of the land surface

What is the definition of real property?

real estate plus the bundle of legal rights

What are the five rights in the bundle of legal rights?

possession, control, enjoyment, exclusion, and disposition

How can personal property be distinguished from real property?

by its mobility

What is considered to have the greatest impact on the values of property?

Area preference

What is a fixture?

real property

What are the three tests for determining fixtures?

agreement of the parties, method of attachment of the item, and adaptation of the item to the real estate

When is a manufactured home considered personal property in Illinois?

unless it has been permanently attached to the land

What law governs real estate activities in Illinois?

Real Estate License Act of 2000

How are fencing materials converted to real estate?

by annexation

What is the relationship of a broker to his client?

fiduciary

What must a broker do if the client says not to advertise in an out-of-area newspaper?

must obey the lawful instructions of his client (principal)

How soon must a broker deliver true copies of all documents after signing?

within 24 hours

What does disclosure mean in real estate?

the duty of the broker to keep his client informed of all facts that could affect a real estate transaction

What are the three things a broker owes a customer (third party)?

honest treatment, disclosure of all material information about the property, and disclosure of all known, adverse facts about the property's physical condition

Why must the seller complete the disclosure form?

because seller disclosure of property conditions is required by Illinois statute

What should a broker do if he learns of a previously undiscovered latent defect?

discuss it with the seller and inform any prospective buyers of the defect

What are exaggerated statements about property called?

puffing

Who is considered a consumer under Illinois law?

anyone who receives brokerage services but is not represented by the broker

What can a broker do if the buyer is the client?

advise the buyer if the seller's listing price is unrealistic

When can a broker collect commission from both buyer and seller?

when both parties have been informed in writing and have agreed to the dual representation

What type of agency is not recognized under Illinois law?

undisclosed dual agency

Who may collect commission from a seller in Illinois?

only a licensed managing broker

How is the broker's commission determined?

by mutual agreement

When are most commissions paid to the broker?

when the transaction is closed

What does procuring cause mean?

the broker was responsible for the chain of events that resulted in the sale

What is the broker's only option if the seller refuses to pay?

sue the seller in court for the commission

Can a licensee legally demand a performance bonus from anyone?

no

What does a sponsored licensee do when listing a condo unit?

acting on behalf of the sponsoring broker

What is grounds for suspension or revocation of a license in a listing agreement?

Failure to specify a termination date

What happens when a managing broker signs a listing agreement with a seller?

he has become an agent of the seller

What type of listing agreement pays the listing broker even if the owner makes the sale without the broker?

exclusive-right-to-sell listing agreement

What must all exclusive listing agreements be to be legal in a court of law?

in writing

What makes the commission contingent on the broker producing a buyer?

open listing

What gives the broker authority to distribute the listing information to other brokers?

multiple listing clause

What are Illinois licensees prohibited from doing without the written consent of the principal?

making any additions to, deletions from, or alterations to the listing agreement