Illinois Real Estate Exam Topics: Full Breakdown

The Illinois PSI real estate exam is 140 questions: 100 national and 40 state. Here's a complete breakdown of what's tested in each section.

National Section (100 Questions)

Property Ownership and Land Use (approx. 15 questions) - Types of ownership: severalty, joint tenancy, tenancy in common, tenancy by the entirety - Freehold estates (fee simple, life estate) and leasehold estates - Land use controls: zoning, eminent domain, police power, escheat, taxation - Environmental hazards: lead paint, radon, asbestos, underground storage tanks, CERCLA

Valuation and Market Analysis (approx. 10 questions) - Three appraisal approaches: sales comparison, income, cost - Net Operating Income (NOI), Capitalization Rate, Gross Rent Multiplier (GRM) - Competitive Market Analysis (CMA) vs. formal appraisal

Financing (approx. 13 questions) - Loan types: conventional, FHA, VA, USDA - Points, APR, loan-to-value, PMI, amortization - Federal regulations: RESPA, TRID, Truth in Lending Act, ECOA, CRA

Agency Relationships (approx. 17 questions) - Types: seller's agent, buyer's agent, dual agent, designated agent - Fiduciary duties: OLD CAR (obedience, loyalty, disclosure, confidentiality, accounting, reasonable care) - Agency disclosure timing and form requirements

Contracts (approx. 23 questions) - Essential elements: offer, acceptance, consideration, competent parties, lawful purpose, writing - Void vs. voidable vs. unenforceable - Contingencies: financing, inspection, appraisal, sale of existing home - Breach of contract remedies: specific performance, liquidated damages, rescission, actual damages

Transfer of Property (approx. 10 questions) - Deed types: general warranty, special warranty, quitclaim, bargain and sale - Title search, title insurance, recording acts - Closing/settlement process, TRID disclosures

Real Estate Calculations (approx. 9 questions) - Commission, proration, LTV, cap rate, area, points, GRM

Mandated Disclosures (approx. 3 questions) - Lead-based paint (pre-1978), material defects, environmental hazards

State Section (40 Questions)

Illinois License Law (225 ILCS 454) - Governing statute: **Illinois Real Estate License Act of 2000 (225 ILCS 454)** - Regulator: **Illinois Department of Financial and Professional Regulation (IDFPR)** - **No commission** — IDFPR regulates directly - License types: **broker** (works under managing broker) and **managing broker** (supervises brokers) - Pre-license: **75 hours** for broker

License Procedures - Application requirements - Renewal: every 2 years - CE: **12 hours per renewal cycle** (4 hours Core B + 8 hours electives) - Inactive and lapsed license procedures - Background checks and criminal history review

Illinois Agency Law - Illinois law uses the same agency types as nationally (seller's agent, buyer's agent, dual agent, designated agent) - Agency disclosure required in writing - Managing broker's supervisory responsibilities

Illinois Disclosure Requirements - **Residential Real Property Disclosure Act:** Sellers must complete and provide a written Residential Real Property Disclosure Report to buyers - **Radon Awareness Act:** Sellers must provide the Illinois Radon Awareness pamphlet to buyers of residential property - Lead-based paint disclosure for pre-1978 homes (federal requirement)

Illinois Transfer Tax - **State transfer tax:** $0.50 per $500 of purchase price (paid by seller) - **Chicago transfer tax:** Approximately $5.25 per $500 (varies — Chicago imposes a higher municipal tax) - Other municipalities may impose additional transfer taxes

Illinois Fair Housing - Federal 7 classes + **sexual orientation, gender identity, marital status, ancestry, military status, source of income** - **Total protected classes in Illinois: 13** (7 federal + 6 state additions)

Trust Accounts and Fund Handling - Broker trust account requirements - Timelines for depositing earnest money - Commingling and conversion violations

Managing Broker Supervision - Responsibilities of the managing broker for the licensed firm - Broker-under-managing-broker supervision structure - Responsibilities for advertising, contracts, and trust accounts

Study Priority

The broker/managing broker distinction, IDFPR regulation (no commission), 225 ILCS 454, Illinois disclosure requirements, and fair housing additions are the most commonly tested Illinois-specific topics. Spend at least 40% of your total study time on the state section.

For Illinois practice exams by topic, visit [CARealestate.com/states/illinois](https://carealestate.com/states/illinois).