CRS Cheat Sheet 2026

The 30 highest-yield CRS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the 'zone of possible agreement' (ZOPA) in a real estate negotiation? → The range between the buyer's maximum and seller's minimum where a deal can occur
2. What is the difference between gross rental income and net operating income (NOI)? → NOI subtracts operating expenses (but not debt service) from gross income
3. Which of the following best describes a buyer's agent's fiduciary duty of loyalty? → Keeping the buyer's confidential information private and acting in their best interest
4. Pine trees and bougainvillea bushes on a property that were planted by the current owner are examples of: → Real Estate
5. How can a CRS agent use automated valuation models (AVMs) responsibly? → As a starting point for research, supplemented with local expertise and a thorough CMA
6. What is a 'cloud on title' and why is it important in a real estate transaction? → Any claim, encumbrance, or defect that affects the marketability of the title
7. What is a 'contingency removal' in California-style contracts and what does it signify? → The buyer actively releasing their right to exit the contract under a specific contingency
8. Which listening technique involves paraphrasing the other party's statement to confirm understanding during negotiation? → Active listening with reflective response
9. What is the cap rate used for in residential investment property analysis? → To measure the property's income-generating potential independent of financing
10. The lender in a traditional mortgage loan transaction is known as what? → A mortgagee
11. When a lender requires a 'clear to close,' what does it mean? → The underwriter has approved all loan conditions and the loan is ready to fund
12. What is the primary risk of negative amortization in an adjustable-rate mortgage? → The loan balance can increase over time because payments don't cover all accrued interest
13. Which financing concept should a CRS agent explain when a buyer asks about the difference between pre-qualification and pre-approval? → Pre-approval involves a full credit check and income verification, making it stronger
14. What is the primary purpose of a pre-listing inspection for sellers? → To identify and address potential issues before the property goes to market
15. Which factor is most likely to require a significant upward adjustment when comparing a comp to a subject property in a CMA? → The comparable sold 12 months ago in a market with 10% annual appreciation
16. What is a 'seller concession' in a residential real estate transaction? → Funds the seller agrees to contribute toward the buyer's closing costs or prepaid expenses
17. If a leased premise becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called? → Constructive eviction
18. Real property includes all of the following except: → Trade fixtures
19. Which document formally authorizes a listing agent to represent a seller and market their property? → Listing Agreement
20. In negotiation, what is 'bracketing' as a strategy for a buyer? → Making an offer low enough so that splitting the difference lands near the desired price
21. What does an 'absorption rate' analysis tell a listing agent when advising a seller on pricing strategy? → How quickly the current inventory of competing properties is selling in the market
22. What does LTV (Loan-to-Value ratio) indicate in a mortgage context? → The percentage of the property's value that is financed by the mortgage
23. What does 'cash-on-cash return' measure for a real estate investor? → The annual pre-tax cash flow divided by the total cash invested
24. Extrajudicial settlement of estate means: → Settling the estate among the heirs without going to court
25. What does IDX (Internet Data Exchange) allow real estate agents to do? → Display other brokers' MLS listings on their own website under agreed-upon rules
26. Which of the following terms would include the interests, benefits, and rights inherent in the Ownership of Real Estate? → Real Property
27. The share of an illegitimate child is equivalent to → 1/2 share of a legitimate child
28. When is the best time for a CRS seller's agent to present multiple competing offers? → At a set deadline after establishing a multiple-offer disclosure process
29. Which CRS negotiation principle emphasizes separating people from the problem in a dispute? → Interest-based (principled) negotiation
30. A buyer wants to make an offer below asking price. As their CRS agent, what is the most appropriate first step? → Present a comparative market analysis to support the offer strategy