Graduate REALTOR Institute GRI Practice
Exam
**Question 1.** Which article of the NAR Code of Ethics requires REALTORS® to disclose any
known material defects in a property?
A) Article 1
B) Article 2
C) Article 3
D) Article 4
Answer: C
Explanation: Article 3 obligates REALTORS® to disclose all known material facts that materially
affect the value or desirability of the property.
**Question 2.** A REALTOR® who receives a commission from a lender for referring a client to
that lender is violating which provision of RESPA?
A) Anti‑kickback rule
B) Truth‑in‑Lending rule
C) Fair Housing rule
D) Advertising rule
Answer: A
Explanation: RESPA’s anti‑kickback prohibition forbids giving or receiving any fee for referrals
that are not for actual services rendered.
**Question 3.** Which of the following is NOT a protected class under the Federal Fair Housing
Act?
A) Age
B) Religion
C) National origin
D) Disability
, Graduate REALTOR Institute GRI Practice
Exam
Answer: A
Explanation: Age is not listed as a protected class under the Fair Housing Act; the protected
classes are race, color, religion, sex, national origin, familial status, and disability.
**Question 4.** In a short‑sale transaction, the seller’s liability to the buyer is primarily limited
by which document?
A) Purchase agreement
B) Listing agreement
C) Short‑sale addendum
D) Agency disclosure
Answer: C
Explanation: A short‑sale addendum outlines the seller’s obligations and limits liability because
the sale depends on lender approval.
**Question 5.** Which type of Errors & Omissions (E&O) coverage excludes claims arising from
intentional misconduct?
A) Claims‑Made policy
B) Occurrence policy
C) Blanket policy
D) Tail coverage
Answer: B
Explanation: An occurrence policy covers claims for incidents that occur during the policy
period, even if sued later, but typically excludes intentional wrongdoing.
**Question 6.** Under the Truth‑in‑Lending Act, the APR must be disclosed in which of the
following ways?
A) Only on the loan estimate
, Graduate REALTOR Institute GRI Practice
Exam
B) In the advertisement of credit terms
C) Only in the closing disclosure
D) Not required for mortgages under $25,000
Answer: B
Explanation: TILA requires the APR to be disclosed in any advertisement that mentions credit
terms, ensuring consumers can compare loan costs.
**Question 7.** Which of the following is a prohibited antitrust practice for real‑estate brokers?
A) Sharing market data with competitors
B. Price‑fixing among multiple brokerages
C. Referring clients to another broker for a fee
D. Offering a discount for first‑time homebuyers
Answer: B
Explanation: Price‑fixing is an illegal agreement among competitors to set prices, violating
antitrust laws.
**Question 8.** A REALTOR® uses a cloud‑based CRM to store client emails. Which security
practice best protects that data?
A) Storing passwords in a spreadsheet
B) Using two‑factor authentication
C. Sharing login credentials with assistants
D. Disabling automatic updates
Answer: B
Explanation: Two‑factor authentication adds a second verification step, significantly reducing
unauthorized access.
, Graduate REALTOR Institute GRI Practice
Exam
**Question 9.** Which electronic signature method is considered legally binding under the
ESIGN Act?
A) Typed name in an email body
B) Scanned handwritten signature attached as a PDF
C) Click‑to‑agree button with timestamp
D) Verbal consent recorded on a phone call
Answer: C
Explanation: The ESIGN Act recognizes click‑to‑agree signatures with a timestamp as valid
electronic signatures.
**Question 10.** When performing a CMA, which factor is least likely to affect the valuation of
a single‑family home?
A) Recent sales of comparable homes
B) Neighborhood school ratings
C) Owner’s personal opinion of the property
D) Planned commercial development nearby
Answer: C
Explanation: The owner’s personal opinion is subjective and not an objective market factor used
in a CMA.
**Question 11.** Geospatial analysis for site selection would most likely use which data
source?
A) MLS listing photos
B) Census tract income data
C) Broker’s personal network
D) Open house attendance logs
Exam
**Question 1.** Which article of the NAR Code of Ethics requires REALTORS® to disclose any
known material defects in a property?
A) Article 1
B) Article 2
C) Article 3
D) Article 4
Answer: C
Explanation: Article 3 obligates REALTORS® to disclose all known material facts that materially
affect the value or desirability of the property.
**Question 2.** A REALTOR® who receives a commission from a lender for referring a client to
that lender is violating which provision of RESPA?
A) Anti‑kickback rule
B) Truth‑in‑Lending rule
C) Fair Housing rule
D) Advertising rule
Answer: A
Explanation: RESPA’s anti‑kickback prohibition forbids giving or receiving any fee for referrals
that are not for actual services rendered.
**Question 3.** Which of the following is NOT a protected class under the Federal Fair Housing
Act?
A) Age
B) Religion
C) National origin
D) Disability
, Graduate REALTOR Institute GRI Practice
Exam
Answer: A
Explanation: Age is not listed as a protected class under the Fair Housing Act; the protected
classes are race, color, religion, sex, national origin, familial status, and disability.
**Question 4.** In a short‑sale transaction, the seller’s liability to the buyer is primarily limited
by which document?
A) Purchase agreement
B) Listing agreement
C) Short‑sale addendum
D) Agency disclosure
Answer: C
Explanation: A short‑sale addendum outlines the seller’s obligations and limits liability because
the sale depends on lender approval.
**Question 5.** Which type of Errors & Omissions (E&O) coverage excludes claims arising from
intentional misconduct?
A) Claims‑Made policy
B) Occurrence policy
C) Blanket policy
D) Tail coverage
Answer: B
Explanation: An occurrence policy covers claims for incidents that occur during the policy
period, even if sued later, but typically excludes intentional wrongdoing.
**Question 6.** Under the Truth‑in‑Lending Act, the APR must be disclosed in which of the
following ways?
A) Only on the loan estimate
, Graduate REALTOR Institute GRI Practice
Exam
B) In the advertisement of credit terms
C) Only in the closing disclosure
D) Not required for mortgages under $25,000
Answer: B
Explanation: TILA requires the APR to be disclosed in any advertisement that mentions credit
terms, ensuring consumers can compare loan costs.
**Question 7.** Which of the following is a prohibited antitrust practice for real‑estate brokers?
A) Sharing market data with competitors
B. Price‑fixing among multiple brokerages
C. Referring clients to another broker for a fee
D. Offering a discount for first‑time homebuyers
Answer: B
Explanation: Price‑fixing is an illegal agreement among competitors to set prices, violating
antitrust laws.
**Question 8.** A REALTOR® uses a cloud‑based CRM to store client emails. Which security
practice best protects that data?
A) Storing passwords in a spreadsheet
B) Using two‑factor authentication
C. Sharing login credentials with assistants
D. Disabling automatic updates
Answer: B
Explanation: Two‑factor authentication adds a second verification step, significantly reducing
unauthorized access.
, Graduate REALTOR Institute GRI Practice
Exam
**Question 9.** Which electronic signature method is considered legally binding under the
ESIGN Act?
A) Typed name in an email body
B) Scanned handwritten signature attached as a PDF
C) Click‑to‑agree button with timestamp
D) Verbal consent recorded on a phone call
Answer: C
Explanation: The ESIGN Act recognizes click‑to‑agree signatures with a timestamp as valid
electronic signatures.
**Question 10.** When performing a CMA, which factor is least likely to affect the valuation of
a single‑family home?
A) Recent sales of comparable homes
B) Neighborhood school ratings
C) Owner’s personal opinion of the property
D) Planned commercial development nearby
Answer: C
Explanation: The owner’s personal opinion is subjective and not an objective market factor used
in a CMA.
**Question 11.** Geospatial analysis for site selection would most likely use which data
source?
A) MLS listing photos
B) Census tract income data
C) Broker’s personal network
D) Open house attendance logs
