Certified Residential Specialist (CRS)
Practice Exam 2 QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
Residential Real Estate Council (RRC)
1. What is the primary purpose of a CMA (Comparative Market Analysis)?
a) To establish the listing price based on recent comparable sales
b) To appraise the property’s value officially
c) To determine a buyer’s mortgage eligibility
d) To negotiate a contract price
Answer: a) To establish the listing price based on recent comparable sales
Rationale: A CMA helps agents price homes competitively by analyzing recent
sales of similar properties in the area.
2. Which type of listing agreement gives the broker the exclusive right to sell the
property?
,a) Open Listing
b) Exclusive Agency Listing
c) Exclusive Right to Sell Listing
d) Net Listing
Answer: c) Exclusive Right to Sell Listing
Rationale: The broker earns a commission regardless of who sells the property
under this agreement.
3. What does “as-is” mean in a real estate transaction?
a) The seller will make all necessary repairs before closing
b) The buyer accepts the property in its current condition without seller repairs
c) The property is free of any liens or encumbrances
d) The property is guaranteed to appraise at the sale price
Answer: b) The buyer accepts the property in its current condition without seller
repairs
Rationale: “As-is” means the seller is not obligated to fix defects before closing.
4. What does RESPA (Real Estate Settlement Procedures Act) require?
a) Disclosure of closing costs to the buyer
b) Sellers to provide a home warranty
c) Brokers to obtain a license before selling homes
d) Inspectors to certify home condition
, Answer: a) Disclosure of closing costs to the buyer
Rationale: RESPA mandates clear disclosure of settlement costs to prevent
surprises.
5. Which fiduciary duty requires the agent to keep the client’s information
confidential?
a) Obedience
b) Loyalty
c) Disclosure
d) Confidentiality
Answer: d) Confidentiality
Rationale: Confidentiality protects client information from unauthorized
disclosure.
6. What is the best description of a “dual agency”?
a) Representing both buyer and seller in the same transaction
b) Working for two different brokers in one transaction
c) Acting as a buyer’s agent only
d) Being licensed in two states simultaneously
Answer: a) Representing both buyer and seller in the same transaction
Rationale: Dual agency involves the agent representing both parties, which
requires full disclosure and consent.
Practice Exam 2 QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
Residential Real Estate Council (RRC)
1. What is the primary purpose of a CMA (Comparative Market Analysis)?
a) To establish the listing price based on recent comparable sales
b) To appraise the property’s value officially
c) To determine a buyer’s mortgage eligibility
d) To negotiate a contract price
Answer: a) To establish the listing price based on recent comparable sales
Rationale: A CMA helps agents price homes competitively by analyzing recent
sales of similar properties in the area.
2. Which type of listing agreement gives the broker the exclusive right to sell the
property?
,a) Open Listing
b) Exclusive Agency Listing
c) Exclusive Right to Sell Listing
d) Net Listing
Answer: c) Exclusive Right to Sell Listing
Rationale: The broker earns a commission regardless of who sells the property
under this agreement.
3. What does “as-is” mean in a real estate transaction?
a) The seller will make all necessary repairs before closing
b) The buyer accepts the property in its current condition without seller repairs
c) The property is free of any liens or encumbrances
d) The property is guaranteed to appraise at the sale price
Answer: b) The buyer accepts the property in its current condition without seller
repairs
Rationale: “As-is” means the seller is not obligated to fix defects before closing.
4. What does RESPA (Real Estate Settlement Procedures Act) require?
a) Disclosure of closing costs to the buyer
b) Sellers to provide a home warranty
c) Brokers to obtain a license before selling homes
d) Inspectors to certify home condition
, Answer: a) Disclosure of closing costs to the buyer
Rationale: RESPA mandates clear disclosure of settlement costs to prevent
surprises.
5. Which fiduciary duty requires the agent to keep the client’s information
confidential?
a) Obedience
b) Loyalty
c) Disclosure
d) Confidentiality
Answer: d) Confidentiality
Rationale: Confidentiality protects client information from unauthorized
disclosure.
6. What is the best description of a “dual agency”?
a) Representing both buyer and seller in the same transaction
b) Working for two different brokers in one transaction
c) Acting as a buyer’s agent only
d) Being licensed in two states simultaneously
Answer: a) Representing both buyer and seller in the same transaction
Rationale: Dual agency involves the agent representing both parties, which
requires full disclosure and consent.
