[GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
**Question 1.** Which fiduciary duty requires a REALTOR® to keep client funds separate from
personal funds?
A) Loyalty
B) Accounting
C) Confidentiality
D) Obedience
Answer: B
Explanation: The accounting duty mandates that agents maintain accurate records and
segregate client monies from their own.
**Question 2.** In a dual agency relationship, the agent must:
A) Disclose the dual role to all parties and obtain written consent.
B) Represent only the seller.
C) Charge a higher commission.
D) Refuse to disclose any conflicts.
Answer: A
Explanation: Dual agency creates a potential conflict, so full disclosure and written consent are
required by law.
**Question 3.** The federal Fair Housing Act protects which of the following classes?
A) Citizenship status
B) Sexual orientation
C) Disability
D) Marital status
Answer: C
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
Explanation: The Act protects race, color, national origin, religion, sex, familial status, and
disability.
**Question 4.** “Blockbusting” is best defined as:
A) Offering a lower price to a buyer based on race.
B) Inducing homeowners to sell by threatening devaluation due to minority influx.
C) Refusing to show a property to a protected class.
D) Overpricing a home to increase commission.
Answer: B
Explanation: Blockbusting manipulates fear of declining property values caused by incoming
minorities.
**Question 5.** A contract is considered “voidable” when:
A) It lacks consideration.
B) It is illegal.
C) One party lacked capacity to consent.
D) It is not in writing.
Answer: C
Explanation: Lack of capacity (e.g., minor, mentally incompetent) makes a contract voidable at
the party’s discretion.
**Question 6.** The most common contingency in a residential purchase contract is:
A) Title contingency
B) Financing contingency
C) Inspection contingency
D) Appraisal contingency
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
Answer: B
Explanation: Buyers often include a financing contingency to protect themselves if they cannot
obtain a loan.
**Question 7.** When a breach of contract occurs, the non‑breaching party’s primary legal
remedy is:
A) Specific performance
B) Rescission
C) Monetary damages
D) Injunctive relief
Answer: C
Explanation: Monetary damages compensate for losses; specific performance is rare in real
estate.
**Question 8.** An agent should refer a client to an attorney when:
A) The client asks for a price reduction.
B) The matter involves legal interpretation of contract language.
C. The client wants a home inspection.
D. The client is negotiating repairs.
Answer: B
Explanation: Interpreting legal documents is the practice of law and requires a licensed attorney.
**Question 9.** Errors and Omissions (E&O) insurance primarily protects agents against:
A. Property damage claims.
B. Personal injury lawsuits.
C. Claims of professional negligence.
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
D. Loss of commission.
Answer: C
Explanation: E&O covers liability arising from mistakes or omissions in professional services.
**Question 10.** Under antitrust law, “price fixing” is:
A. Permitted if both parties agree.
B. Illegal collaboration to set prices.
C. Allowed in exclusive listings.
D. Only illegal for wholesale goods.
Answer: B
Explanation: Price fixing is a per se violation of the Sherman Act, prohibiting collusion on prices.
**Question 11.** Which practice helps prevent wire fraud in real estate closings?
A. Using only cash payments.
B. Verifying wiring instructions via a known phone number.
C. Accepting email confirmations from clients.
D. Allowing clients to use personal email accounts.
Answer: B
Explanation: Confirming wiring instructions through a trusted phone call mitigates fraud risk.
**Question 12.** Article 1 of the NAR Code of Ethics states that REALTORS® must:
A. Provide equal professional services to all parties.
B. Never disclose confidential client information.
C. Promote their own interests above all.
D. Disclose any personal interest in a transaction.
Certification Exam Guide
**Question 1.** Which fiduciary duty requires a REALTOR® to keep client funds separate from
personal funds?
A) Loyalty
B) Accounting
C) Confidentiality
D) Obedience
Answer: B
Explanation: The accounting duty mandates that agents maintain accurate records and
segregate client monies from their own.
**Question 2.** In a dual agency relationship, the agent must:
A) Disclose the dual role to all parties and obtain written consent.
B) Represent only the seller.
C) Charge a higher commission.
D) Refuse to disclose any conflicts.
Answer: A
Explanation: Dual agency creates a potential conflict, so full disclosure and written consent are
required by law.
**Question 3.** The federal Fair Housing Act protects which of the following classes?
A) Citizenship status
B) Sexual orientation
C) Disability
D) Marital status
Answer: C
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
Explanation: The Act protects race, color, national origin, religion, sex, familial status, and
disability.
**Question 4.** “Blockbusting” is best defined as:
A) Offering a lower price to a buyer based on race.
B) Inducing homeowners to sell by threatening devaluation due to minority influx.
C) Refusing to show a property to a protected class.
D) Overpricing a home to increase commission.
Answer: B
Explanation: Blockbusting manipulates fear of declining property values caused by incoming
minorities.
**Question 5.** A contract is considered “voidable” when:
A) It lacks consideration.
B) It is illegal.
C) One party lacked capacity to consent.
D) It is not in writing.
Answer: C
Explanation: Lack of capacity (e.g., minor, mentally incompetent) makes a contract voidable at
the party’s discretion.
**Question 6.** The most common contingency in a residential purchase contract is:
A) Title contingency
B) Financing contingency
C) Inspection contingency
D) Appraisal contingency
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
Answer: B
Explanation: Buyers often include a financing contingency to protect themselves if they cannot
obtain a loan.
**Question 7.** When a breach of contract occurs, the non‑breaching party’s primary legal
remedy is:
A) Specific performance
B) Rescission
C) Monetary damages
D) Injunctive relief
Answer: C
Explanation: Monetary damages compensate for losses; specific performance is rare in real
estate.
**Question 8.** An agent should refer a client to an attorney when:
A) The client asks for a price reduction.
B) The matter involves legal interpretation of contract language.
C. The client wants a home inspection.
D. The client is negotiating repairs.
Answer: B
Explanation: Interpreting legal documents is the practice of law and requires a licensed attorney.
**Question 9.** Errors and Omissions (E&O) insurance primarily protects agents against:
A. Property damage claims.
B. Personal injury lawsuits.
C. Claims of professional negligence.
, [GRI] Graduate REALTOR Institute GRI
Certification Exam Guide
D. Loss of commission.
Answer: C
Explanation: E&O covers liability arising from mistakes or omissions in professional services.
**Question 10.** Under antitrust law, “price fixing” is:
A. Permitted if both parties agree.
B. Illegal collaboration to set prices.
C. Allowed in exclusive listings.
D. Only illegal for wholesale goods.
Answer: B
Explanation: Price fixing is a per se violation of the Sherman Act, prohibiting collusion on prices.
**Question 11.** Which practice helps prevent wire fraud in real estate closings?
A. Using only cash payments.
B. Verifying wiring instructions via a known phone number.
C. Accepting email confirmations from clients.
D. Allowing clients to use personal email accounts.
Answer: B
Explanation: Confirming wiring instructions through a trusted phone call mitigates fraud risk.
**Question 12.** Article 1 of the NAR Code of Ethics states that REALTORS® must:
A. Provide equal professional services to all parties.
B. Never disclose confidential client information.
C. Promote their own interests above all.
D. Disclose any personal interest in a transaction.
