IL Real Estate study guide
IL Real Estate · Work through your exam, one topic at a time.
The Illinois real estate broker credential is issued by the Illinois Department of Financial and Professional Regulation (IDFPR), the state agency that licenses and regulates real estate professionals through its Professional Regulation division. Candidates typically pursue it to work under a sponsoring brokerage while handling listings, showings, buyer and seller representation, and transaction paperwork. The IL Real Estate study guide has 8 sections and about 2,692 words.
01Agency, Brokerage, and Fiduciary Duties
Agency is the relationship in which a licensee acts for a client and owes fiduciary duties. Illinois expects brokerage relationships to be documented in writing, and the licensee must disclose in writing whom he or she represents before the consumer signs a listing agreement or an offer.
351 words, about 2 min02Real Property Characteristics, Ownership, and Interests
Real property includes land, things permanently attached, and the bundle of rights (use, possess, exclude, transfer, encumber). Personal property becomes a fixture when it is permanently attached.
328 words, about 2 min03Contracts and Transaction Documents
A valid contract needs offer, acceptance, consideration, capacity, legality, and mutual assent. Real estate contracts must satisfy the statute of frauds - a writing signed by the party to be bound, with essential terms (parties, property, price, signatures).
337 words, about 2 min04Real Estate Finance and Financing
Candidates must know loan programs (conventional, FHA with mortgage insurance premium, VA with a funding fee and no monthly PMI, USDA), loan-to-value, points versus origination fees, and the PITI payment (principal, interest, taxes, insurance) plus mortgage insurance and HOA dues. The note rate is the interest rate; the APR folds in certain closing costs, so it is usually higher.
330 words, about 2 min05Valuation and Comparative Market Analysis
Value is shaped by the principles of substitution, contribution, conformity, progression and regression, anticipation, and highest and best use. The sales comparison approach dominates for residential property; the cost approach (replacement cost less depreciation plus land) suits new or special-purpose buildings; the income approach (direct capitalization, gross rent multiplier) suits investment property.
318 words, about 2 min06Transfer of Title, Deeds, and Recording
Title passes by deed, will, intestate succession, or operation of law. A valid deed needs a competent grantor, named parties, words of conveyance, a legal description, the grantor's signature, and delivery with acceptance.
328 words, about 2 min07Illinois Real Estate License Act and Administrative Rules
Illinois regulates brokerage under the Real Estate License Act, administered by the Division of Real Estate within IDFPR, with the Real Estate Administration and Disciplinary Board advising on discipline. License categories include broker, managing broker, and leasing agent; corporations and partnerships must also be licensed and must designate a managing broker.
346 words, about 2 min08Fair Housing, Advertising, and Consumer Protection
Federal fair housing law prohibits discrimination based on race, color, religion, sex (including sexual orientation and gender identity), national origin, familial status, and disability, in sale, rental, advertising, brokerage services, and financing. Illinois adds protections under the Illinois Human Rights Act, including ancestry, age, marital status, military status, unfavorable discharge from military service, order of protection status, sexual orientation, and gender identity.
354 words, about 2 min