Free Illinois Math Practice Test — LicenseIQ

Question 1

On a $250,000 loan, how much is 2 discount points?

Accepted Answer

1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.

Question 2

A buyer purchases a home for $300,000 and takes title subject to the seller's existing $120,000 mortgage, which remains outstanding. What is the state transfer tax?

Accepted Answer

Section 31-10 excludes the outstanding balance of a mortgage the property is transferred subject to. Taxable value = $300,000 - $120,000 = $180,000. $180,000 / $500 = 360 units. 360 x $0.50 = $180.00.

Question 3

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 4

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 5

A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

Accepted Answer

LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)

Question 6

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 7

A downstate home has a fair cash value of $240,000. It is assessed at 33 1/3%, the equalization factor is 1.0, the owner claims a $6,000 general homestead exemption, and the tax rate is 8%. What is the tax?

Accepted Answer

Assessed value = $240,000 / 3 = $80,000. EAV = $80,000 x 1.0 = $80,000. Taxable EAV = $80,000 - $6,000 = $74,000. Tax = $74,000 x 0.08 = $5,920. $6,400 omits the exemption.

Question 8

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 9

A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

Accepted Answer

Area = 330 x 660 = 217,800 sq ft; 217,800 / 43,560 = 5 acres.

Question 10

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 11

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 12

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 13

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 14

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 15

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 16

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 17

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 18

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 19

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 20

A Cook County home has a market value of $400,000. Residential property is assessed at 10%, the equalization factor is 3.0, the owner claims only the $10,000 general homestead exemption, and the tax rate is 6.8%. What is the tax bill?

Accepted Answer

Assessed value = $400,000 x 10% = $40,000. EAV = $40,000 x 3.0 = $120,000. Taxable EAV = $120,000 - $10,000 = $110,000. Tax = $110,000 x 0.068 = $7,480. $8,160 forgets to subtract the exemption.

Question 21

A house in DeKalb County sells for $289,900. What is the combined state and county transfer tax?

Accepted Answer

Step 1: $289,900 / $500 = 579.8, rounded up to 580 units. Step 2: State = 580 x $0.50 = $290.00. Step 3: County = 580 x $0.25 = $145.00. Total = $435.00. $290.00 is the state tax alone.

Question 22

Illinois property taxes are paid in arrears. At a closing in July, which proration is typical?

Accepted Answer

Because Illinois taxes for a year are paid the following year, a seller usually owes accrued but unpaid taxes at closing and gives the buyer a credit.

Question 23

A landlord held a $1,200 security deposit and, in bad faith, failed to return it or send an itemized statement. A court may award the tenant:

Accepted Answer

The Act makes a landlord who fails to provide the statement or acts in bad faith liable for twice the deposit due: 2 x $1,200 = $2,400, plus court costs and reasonable attorney fees.

Question 24

A Chicago tenant covered by the RLTO pays $1,500 per month and is late. What is the maximum late fee?

Accepted Answer

The RLTO caps late fees at $10 for the first $500 of monthly rent plus 5% of rent above $500: $10 + 0.05 x ($1,500 - $500) = $10 + $50 = $60.

Question 25

A home sells for $412,300. What is the Illinois state transfer tax?

Accepted Answer

$412,300 / $500 = 824.6, which rounds up to 825 units because the tax applies to each $500 or fraction. 825 x $0.50 = $412.50. $206.25 is the county tax at $0.25 per $500.

Illinois real estate math practice test

1. On a $250,000 loan, how much is 2 discount points?

2. A buyer purchases a home for $300,000 and takes title subject to the seller's existing $120,000 mortgage, which remains outstanding. What is the state transfer tax?

3. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

4. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

5. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

6. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

7. A downstate home has a fair cash value of $240,000. It is assessed at 33 1/3%, the equalization factor is 1.0, the owner claims a $6,000 general homestead exemption, and the tax rate is 8%. What is the tax?

8. When competing brokerages agree to charge the same commission rate, they commit:

9. A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

10. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

11. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

12. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

13. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

14. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

15. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

16. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

17. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

18. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

19. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

20. A Cook County home has a market value of $400,000. Residential property is assessed at 10%, the equalization factor is 3.0, the owner claims only the $10,000 general homestead exemption, and the tax rate is 6.8%. What is the tax bill?

21. A house in DeKalb County sells for $289,900. What is the combined state and county transfer tax?

22. Illinois property taxes are paid in arrears. At a closing in July, which proration is typical?

23. A landlord held a $1,200 security deposit and, in bad faith, failed to return it or send an itemized statement. A court may award the tenant:

24. A Chicago tenant covered by the RLTO pays $1,500 per month and is late. What is the maximum late fee?

25. A home sells for $412,300. What is the Illinois state transfer tax?

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