Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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Which party typically pays the real estate agent's commission in a residential transaction?

The seller
The buyer
Both parties equally
The lender

The correct answer is: The seller

In most residential real estate transactions, it is customary for the seller to pay the real estate agent's commission. This practice often reflects the seller's obligation to cover the costs associated with the sale of their property, including paying the agent who assists them in marketing and selling the home. The system is structured to incentivize agents to maximize the sale price of the property and to attract buyers. Since the seller is usually the one who benefits directly from the sale, it makes logical sense for them to cover this expense. Additionally, in many cases, the commission is included in the selling price of the home, impacting the overall negotiation dynamics. While buyers can also have representation, and in some situations, they may contribute to the commission, the prevailing norm remains that the seller is responsible for paying the real estate agent's fees in these transactions. This layout helps streamline the process and enables agents to focus on their role in facilitating the sale effectively.