Illinois Real Estate Broker Exam Flashcards

Joint tenancy carries the right of survivorship (a deceased co-owner's share passes to survivors) and requires the four unities. Tenancy in common has no survivorship — each owner's share passes to their heirs and shares can be unequal.

The greatest protection to a buyer, with the grantor warranting clear title against all defects arising at any time, including before the grantor owned the property. It includes covenants such as seisin, quiet enjoyment, and warranty forever.

An encumbrance is any claim or restriction on a property held by someone other than the owner (liens, easements, deed restrictions). A lien is a specific type of encumbrance — a financial/monetary claim used as security for a debt.

A right to use adjoining land that benefits one parcel (the dominant estate) and burdens another (the servient estate). It runs with the land and transfers with ownership.

Race, color, religion, national origin, sex, disability, and familial status. Discrimination in the sale, rental, or financing of housing against these classes is prohibited.

Steering: directing buyers toward or away from areas based on a protected class. Blockbusting: inducing sales by claiming a protected group is moving in. Redlining: denying loans or insurance in certain areas. All are illegal discriminatory practices.

Both secure a loan with real property. A mortgage involves two parties (borrower and lender) and typically requires judicial foreclosure; a deed of trust adds a neutral trustee holding title and often allows non-judicial foreclosure.

Sales comparison (comparing similar recently sold properties), cost approach (land value plus replacement cost minus depreciation), and income approach (capitalizing net operating income). The approach emphasized depends on property type.

Offer and acceptance (mutual assent), consideration, legal capacity of the parties, legal purpose, and — for real estate — compliance with the Statute of Frauds requiring the contract to be in writing to be enforceable.

Real property is land and everything permanently attached to it (buildings, fixtures), plus the associated bundle of rights. Personal property (chattel) is movable and not permanently affixed.

The most complete form of ownership — the largest bundle of rights, of indefinite duration, freely inheritable and transferable, subject only to government powers and any private restrictions.

Police power (regulation like zoning), Eminent domain (taking for public use with compensation), Taxation, and Escheat (property reverts to the state when an owner dies with no heirs or will).

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care/diligence. The agent must place the client's interests above their own.

A brokerage names specific licensees to represent the buyer and seller separately, allowing the firm to represent both parties in a transaction without the whole firm being a dual agent.

A latent defect is a hidden, material physical flaw not discoverable by ordinary inspection. Known latent material defects must be disclosed to buyers.