Exam Cheat Sheet · Quick Reference

Illinois Residential Leasing Agent

Illinois  ·  PSI Services Real Estate

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
50
Passing score
74%
Exam time
120 min
Administered by
PSI Services Real Estate
Format
Closed-book

Illinois State Portion 50 questions

Illinois Definitions and Laws Governing Contracts and Leases 20 Q · 25%
General DefinitionsReal vs. Personal PropertyLeases and Rental AgreementsTerms Related to Leasing and ContractsContract LawLease AgreementsEssential ElementsStatute of FraudsCommon ProvisionsApplications, Credit Reports, and Background ChecksHandling of Monies and DocumentsFiduciary Obligations +2 more
Illinois Fair Housing, Leasing, and Owner/Tenant Relationships 15 Q · 30%
Civil Rights ActsFederal, State, and Local Fair Housing ActsDiscrimination LawsAnti-Drug LawsGovernment Assisted Housing ProgramsAmericans with Disabilities Act (ADA)Owner/Tenant Relationships (Occupancy Standards, Risk Management/Liabilities/Insurance, Owner Obligations/Remedies, Tenant Obligations/Remedies, Renewals/Terminations)
Illinois Real Estate License Act of 2000 15 Q · 45%
Purpose, Authority, and Administration of the ActLeasing ActivitiesLicensing, Education, and Examination RequirementsIssuance, Renewal, and Termination of License (License Maintenance, Continuing Education, Change in License Information)License Conduct (Agency Definitions/Requirements, Advertising Requirements, Misrepresentation)Disciplinary Provisions (Violations, License Refusal/Suspension/Revocation, Fines and Other Sanctions)Leasing Agent/Broker Relationships including compensation

Key Distinctions

Civil Rights Act of 1866vsFederal Fair Housing Act of 1968 (Title VIII)

The 1866 Act bars all racial discrimination in every property transaction with no exemptions whatsoever, while the 1968 Act covers seven protected classes but has limited exemptions (e.g., certain owner-occupied dwellings, religious organizations/private clubs).

Civil Rights Act of 1866; 225 ILCS 454/5-10(a)(5) (fair housing curriculum requirement)
Federal Fair Housing Act protected classesvsIllinois Human Rights Act / 68 Ill. Admin. Code 1450.710 protected classes

Federal law explicitly protects seven classes (race, color, religion, national origin, sex, familial status, disability), while Illinois adds many more, including source of income, sexual orientation (incl. gender identity), ancestry, age, marital status, pregnancy, military status/unfavorable discharge, order of protection status, immigration status, and arrest record.

68 Ill. Admin. Code 1450.710
Reasonable accommodationvsReasonable modification

An accommodation is a change to rules, policies, or services (e.g., providing a sign language interpreter) generally at the housing provider's cost, while a modification is a structural change to the premises that the landlord must permit but which, in non-federally assisted housing, is made at the tenant's expense (with possible restoration of interior changes at move-out).

Federal Fair Housing Act / ADA principles
ClientvsCustomer

A client is represented by the licensee and is owed fiduciary duties including promoting the client's best interests over the licensee's self-interest and confidentiality, while a customer is a consumer who is not represented and is owed only honest treatment and no negligently or knowingly false information.

225 ILCS 454, Section 15-15(a)(2)(F)
Residential leasing agent licensevsBroker license

A residential leasing agent may only lease/rent residential real property, attempt/offer/negotiate such leases, and supervise rent collection, but may not sell, offer, negotiate, list, show, or refer real estate for sale or commercial lease — and supervision by a managing broker does not expand that scope.

225 ILCS 454/5-5
Sponsorship of a residential leasing agentvsSponsorship of a broker

Under Section 5-5(b), residential leasing agents must be sponsored and employed by the sponsoring broker, whereas brokers may be either employed by or associated with a sponsoring broker by written agreement.

225 ILCS 454, Section 5-5(b)
Records from the immediately prior 2 yearsvsRecords older than 2 years (within the 5-year retention period)

Records from the prior 2 years must be kept in the office and produced within 24 hours of a Division request, while older records may be stored elsewhere and must be produced within 30 days.

225 ILCS 454, Section 20-20(a)(18)
Noninterest-bearing escrow account (general rule)vsInterest-bearing escrow account (exception)

Escrow accounts must be noninterest bearing unless payment of interest is otherwise required by law or the principals to the transaction specifically require in writing that the deposit be placed in an interest-bearing account.

225 ILCS 454, Section 20-20(a)(17)
Early disbursement of escrow moneysvsEscrow moneys deemed abandoned

Escrow funds may be disbursed before consummation or termination only per the principals' written direction, written contract provisions, or court order, whereas funds may be deemed abandoned and transferred to the State Treasurer only if no disbursement was made, no court claim was filed, and 6 months have elapsed after a principal's written demand.

225 ILCS 454, Section 20-20(a)(17)(A)
Written brokerage agreement requirementvsEffect of no written agreement

Section 15-50(a) requires brokerage relationships to be set out in a written brokerage agreement, but Section 15-50(a-5) provides the absence of a writing does not bar a client from enforcing an oral agreement and creates no affirmative defense to the existence of an agreement or performance of licensed activity.

225 ILCS 454, Section 15-50(a)
Fixture (real property)vsPersonal property

An item permanently attached or installed so it becomes part of the real estate (e.g., a furnace connected to ductwork) is a fixture and real property, while an item merely resting in place and removable without damage (e.g., a window AC unit) remains personal property.

Trade fixturevsOrdinary fixture

A trade fixture installed by a commercial tenant for business purposes retains its character as personal property and may generally be removed before lease expiration if the premises are restored, while an ordinary fixture becomes part of the real estate.

Key Terms

Escrow moneys (225 ILCS 454/1-10) 225 ILCS 454/1-10
All moneys, promissory notes, or any other type or manner of legal tender or financial consideration deposited with any person for the benefit of the parties to the transaction, excluding security deposits where the holder is also the sole owner of the leased property.
Legal tender for escrow (Sec. 1450.750(a)(3)) Illinois Admin Code, Section 1450.750(a)(3)
Earnest money constitutes escrow moneys whether paid by personal check, cashier's check, money order, cash, or any other form of legal tender, including legally recognized cryptocurrencies.
Real estate (225 ILCS 454/1-10) 225 ILCS 454/1-10
Leaseholds and any other interest or estate in land, corporeal or incorporeal, freehold or non-freehold, situated in Illinois or elsewhere, excluding timeshare or similar vacation items.
Brokerage agreement (225 ILCS 454/1-10) 225 ILCS 454/1-10
An agreement between a sponsoring broker and a consumer for licensed activities that must be in writing and may be exclusive or non-exclusive.
Agency (225 ILCS 454/1-10) 225 ILCS 454/1-10
A relationship in which a broker or licensee, directly or through an affiliated licensee, represents a consumer by the consumer's express or implied consent in a real property transaction.
Customer (225 ILCS 454/1-10; 15-25) 225 ILCS 454/1-10 and 15-25
A consumer who is not being represented by the licensee but who must be treated honestly and not be given negligently or knowingly false information.
Blind advertisement (225 ILCS 454/1-10) Illinois Real Estate License Act (225 ILCS 454), 225 ILCS 454/1-10 (definition of 'Blind advertisement')
Any real estate advertisement used by a licensee that omits the sponsoring broker's complete business name or, for electronic ads, fails to provide a direct link to a display with all required disclosures.
Board (Real Estate Administration and Disciplinary Board) 225 ILCS 454/1-10 and 225 ILCS 454/5-10(c)
The board within the Department that recommends requirements such as education requirements and course content, while the Department retains final decision-making authority.
Commingling (225 ILCS 454/20-20(a)(17), (22)) 225 ILCS 454, Section 20-20(a)(22)
Mixing the money or property of others with the licensee's own money or property, or failing to keep escrow moneys in a special account separate from personal and other business accounts, which is grounds for discipline.
Steering (Federal Fair Housing Act, 42 USC 3604) Federal Fair Housing Act, 42 USC 3604; 225 ILCS 454/5-10(a)(5) (fair housing curriculum)
The illegal practice of directing prospective tenants or buyers toward or away from certain neighborhoods or buildings based on protected class membership.
Source of income (Illinois Human Rights Act; 68 Ill. Admin. Code 1450.710) 68 Ill. Admin. Code 1450.710
A protected class in Illinois covering lawful income sources such as Housing Choice Vouchers, so a licensee may not refuse to rent or list property solely because an applicant uses a voucher.
Rental finding service disclosure (Sec. 1450.785(c)) Illinois Admin Code, Section 1450.785(c)
A written disclosure a rental finding service must give a prospective tenant for each listed unit stating the owner's or authorized agent's name, address, email, and telephone number, a description of the unit, rent, security deposit, utilities included, occupancy date, lease term, source of the information, and all other conditions reasonably expected to concern the tenant.
Identification of the real property (Sec. 1450.770(d)(4)) Illinois Admin Code, Section 1450.770(d)(4)
The required listing-agreement element identifying the real property involved by address and/or legal description.
Prohibited dual agency (225 ILCS 454/15-45(g); Sec. 1450.820) 225 ILCS 454/15-45(g); Section 1450.820
A licensee may never act as a dual agent, even with written consent, in a transaction where the licensee — or an entity in which the licensee has or will have any ownership interest — is a party.
Licensee-status disclosure (225 ILCS 454/10-27) 225 ILCS 454, Section 10-27
A licensee must disclose licensee status in writing to all parties when selling, leasing, or purchasing any direct or indirect interest in the real estate that is the subject of the transaction, including the licensee's own property.
Housing Choice Voucher (Section 8) program Housing Choice Voucher Program (42 USC 1437f); 225 ILCS 454/5-10(a)(5) (leasing curriculum)
A government-assisted housing program in which the government pays a portion of rent directly to the participating landlord and the tenant pays the remainder; it typically does not cover 100% of rent and standard occupancy guidelines still apply.

Formulas to Know

Pre-license education for a residential leasing agent license15 hours of instruction in an approved course of study relating to leasing residential real property (covering Act provisions, fair housing/human rights, advertising and marketing, leases/applications/credit and criminal background reports, owner-tenant relationships and laws, handling of funds, and environmental issues).
Unlicensed grace period for leasing activity (Sec. 5-5(d))Up to 120 consecutive days of residential leasing activity without a license, if supervised by a sponsoring broker, the Department is notified, and the person enrolls in the pre-license course no later than 60 days after beginning activity.
Post-license education threshold for managing broker supervisionUntil a sponsored licensee completes 45 hours of post-license education, the designated managing broker must directly handle all earnest money, escrows, and contract negotiations and approve all advertisements; such licensees have no authority to bind the sponsoring broker.
Notice of termination of sponsorship (Sec. 5-40(b))The party initiating the termination must notify the Department within 24 hours.
Special account / transaction record retentionRetain records a minimum of 5 years; back up electronic records at least monthly; prior-2-year records stay in the office and are produced within 24 hours of a Division/Department request, older records within 30 days.
Abandoned escrow moneys timeline (Sec. 20-20(a)(17)(B))6 months after receipt of a written demand from a principal, with no disbursement made and no notice of a court claim filed, the escrow moneys may be deemed abandoned and transferred to the Office of the State Treasurer.
Brokerage agreement duration limits (Sec. 10-25)Must provide automatic expiration within a definite period; if longer than 1 year, must give the client a right to terminate annually on no more than 30 days' prior written notice — otherwise the agreement is void.
HUD occupancy guidelineTwo persons per bedroom is a general starting-point guideline, not an absolute rule; standards must be reasonable and uniformly applied and cannot be a pretext for familial status discrimination (e.g., 3 persons including an infant in a 1-bedroom is typically reasonable).
HUD fair housing complaint deadline (Title VIII)File the complaint with HUD within 1 year of the alleged discriminatory act.
Tenant rent share under a housing voucherTenant payment = actual rent − housing assistance payment paid directly to the landlord.