IL Real Estate flashcards
IL Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- OLD CAR duties
- Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care are the fiduciary duties a licensee owes a client in an agency relationship.
- Dual agency consent
- A broker representing both buyer and seller must obtain informed written consent from both and may not advocate for one party over the other.
- Designated agency
- One brokerage assigns one licensee to represent the buyer and another licensee to represent the seller, with written disclosure to both clients.
- Compensation and agency
- Payment of a commission does not by itself create an agency relationship; a broker may be paid by the listing broker without representing the seller.
- Fixture
- An item that was personal property becomes real property when annexation, adaptation, and intent show it is permanently attached to the land.
- Tenancy in common
- Co-ownership with no right of survivorship; owners may hold unequal shares and each may transfer or encumber his or her interest.
- Easement appurtenant
- An easement that benefits a dominant parcel and burdens a servient parcel; it runs with the land when the properties are transferred.
- Condominium ownership
- The owner holds fee title to a unit plus an undivided interest in common elements and may be assessed for shared expenses.
- Statute of Frauds
- A real estate sale contract must be written, signed by the party to be charged, and identify the parties, property, and price to be enforceable.
- Counteroffer
- A response that changes the terms of an offer; it terminates the original offer and becomes a new offer that the other party may accept.
- Earnest money
- A deposit by the buyer showing good faith; it is not required for contract validity and may be retained as liquidated damages if the buyer defaults.
- Specific performance
- A remedy in which a court orders a breaching party to carry out the contract, commonly used for real estate because each property is unique.
- Loan-to-value ratio
- The loan amount divided by the property value or purchase price, whichever is lower; it measures lender risk and affects mortgage insurance.
- PITI
- Principal, interest, property taxes, and homeowners insurance; the total approximates the monthly housing payment used in loan qualifying.
- Discount point
- A fee equal to one percent of the loan amount paid at closing to reduce the interest rate over the life of the loan.
- RESPA Closing Disclosure
- A form that must be provided to the borrower at least three business days before closing and that itemizes final loan terms and closing costs.
- Sales comparison approach
- A valuation method that estimates value by comparing the subject property with recent sales and adjusting for differences in features and market conditions.
- Gross rent multiplier
- A quick income indicator calculated as sale price divided by gross monthly rent; it does not account for operating expenses or vacancy.
- Capitalization rate
- A rate used in the income approach; value equals net operating income divided by the capitalization rate.
- Highest and best use
- The use that is legally permissible, physically possible, financially feasible, and maximally productive, producing the highest property value.
- General warranty deed
- A deed containing six covenants, including seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurance.
- Quitclaim deed
- A deed that transfers whatever interest the grantor may have without any warranty of title or against encumbrances.
- Race-notice state
- A recording system in which a later purchaser prevails only if it records before an earlier unrecorded interest and takes without notice.
- Delivery and acceptance
- A deed is effective only when the grantor delivers it with intent to convey and the grantee accepts it; recording is not required between them.
- IDFPR
- The Illinois Department of Financial and Professional Regulation administers the Real Estate License Act and disciplines licensees.
- Illinois broker pre-license
- A candidate must complete 75 hours of approved pre-license education, pass the state exam, and complete 45 hours of post-license education.
- Illinois continuing education
- Brokers renew every two years and must complete 12 hours of continuing education per cycle, including 4 hours of core and 8 hours elective.
- Commingling
- Mixing client escrow funds with the broker's business or personal funds; it is prohibited and is grounds for license discipline.
- Fair Housing Act classes
- The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability.
- Reasonable accommodation
- A change in rules, policies, or practices that allows a person with a disability equal use of housing; it is required unless it causes undue hardship.
- Blockbusting
- Telling homeowners that members of a protected class are moving nearby to induce panic selling at reduced prices; it is illegal.
- Residential disclosure
- Illinois sellers must disclose known material defects on the Residential Real Property Disclosure form; the form is not a warranty of condition.