> Authority: Illinois Real Estate License Act of 2000 (RELA 2000), IDFPR, Illinois Human Rights Act, PSI exam content outline. Illinois uses "Broker" for the entry-level selling license.
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IDFPR (not a separate real estate commission); three license tiers (Leasing Agent, Broker, Managing Broker); Designated Managing Broker (DMB) requirement; 75-hour pre-license course; 1-year application window; 12-hour CE per cycle (4 hrs core); PSI exam format; Recovery Fund.
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Fixture analysis (manner, adaptation, intent, relationship); trade fixtures; appurtenances; three description methods (metes and bounds; government survey — 5th Principal Meridian; lot and block); encumbrances, liens, easements; mechanic's lien (4 months general; 2 months residential); Illinois property tax assessment (county assessor; equalization factor; paid in arrears).
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Fee simple absolute/defeasible; life estates; tenancy in common (default in IL), joint tenancy (four unities + JTWROS), tenancy by the entirety; Illinois deed types (warranty, special warranty, quitclaim, trustee's deed); Torrens system (Cook County); recording system and constructive notice; race-notice statute; Illinois Transfer Tax ($0.50 per $500 of sale price; seller pays; family exemptions); attorney review/inspection period (5 business days — standard IL contract).
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Value principles (highest and best use, substitution, conformity, regression, contribution, anticipation); three approaches: sales comparison (CBS adjustment rule), cost (land + improvements − depreciation; physical/functional/external obsolescence; straight-line), income (NOI, cap rate, IRV triangle, GRM); reconciliation; Illinois property tax assessment (assessed value, equalization factor, exemptions — general homestead, senior freeze); taxes in arrears = seller credit at closing; proration formula.
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Five relationship types: seller agency, buyer agency, dual agency (written consent both parties), designated agency (preferred IL solution — full fiduciary to each client), subagency; OLD CAR duties; confidentiality survives termination; disclosure at first substantive contact (in writing, before price/terms/motivation); Designated Managing Broker neutrality; net listing legal in IL (but discouraged); RELA 2000 as governing statute.
Five essential elements; void/voidable/valid/unenforceable; Statute of Frauds; listing agreement types (exclusive right to sell, exclusive agency, open, net — legal but discouraged in IL); buyer representation agreements; earnest money (deposit by next banking day); trust account rules (no commingling, no conversion); breach remedies; attorney review period (5 business days — standard); IDFPR as dispute authority.
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Federal Fair Housing Act (7 classes); Illinois Human Rights Act additions (ancestry, marital status, military status/unfavorable discharge, sexual orientation, gender identity, order of protection); prohibited conduct (steering, blockbusting, redlining); IDHR 180-day complaint deadline; trust accounts (next banking day deposit; no commingling; no conversion; 5-year records); advertising rules (brokerage name required; no blind ads; internet same as print); antitrust (price fixing + market allocation = per se violations); IDFPR discipline types.
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Illinois Residential Real Property Disclosure Act (765 ILCS 77/1): required for 1–4 unit residential; provided BEFORE buyer makes offer; covers structural, water, HVAC, plumbing, environmental, HOA, defective drywall; "No Representation" cannot shield known defects; buyer may rescind if form not delivered; agent's independent disclosure duty; lead paint (federal, pre-1978, 10-day inspection); radon (Illinois Radon Awareness Act; disclose if known); USTs and asbestos; HOA/condo documents; stigmatized property.
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Mortgage fundamentals (note + mortgage; lien theory; judicial foreclosure in IL; 7-month redemption right); loan types (conventional, FHA, VA, USDA, ARM, balloon, reverse); RESPA (Loan Estimate 3 days; Closing Disclosure 3 days before closing); TILA (APR; right of rescission on refis not purchases); ECOA; HMDA; Illinois closing practice (attorney-handled; table closing); recording with County Recorder of Deeds; state transfer tax ($0.50/$500); Chicago/Cook County additional taxes; property tax proration (in arrears; seller credit).
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