PRINCIPLES OF REAL ESTATE I – CHAMPIONS
SCHOOL EXAM 2026 | VERIFIED ACTUAL
QUESTIONS & SOLUTIONS | TEXAS REAL ESTATE
PREP STUDY GUIDE
• This study guide contains 200 verified exam-style questions covering the full scope
of the Principles of Real Estate I exam as prepared for the Texas Real Estate license
exam under Champions School of Real Estate 2026 curriculum.
• Use this material by reading each question carefully, selecting your answer
mentally before checking the highlighted correct option and EXPERT RATIONALE
below it — this active recall method maximizes retention.
1. What is real property?
A. Personal belongings and movable items
B. Stocks, bonds, and financial instruments
C. Land and anything permanently attached to it
D. Intellectual property and copyrights
E. Leasehold interests only
C. Land and anything permanently attached to it EXPERT RATIONALE: Real
property includes land and all permanent attachments such as buildings, fences, and
fixtures — distinguished from personal property which is movable.
2. What is personal property also known as?
A. Real estate
B. Fixture
C. Chattel
D. Encumbrance
E. Freehold
, C. Chattel EXPERT RATIONALE: Personal property, or chattel, refers to movable
items not permanently attached to land. It is distinct from real property.
3. Which of the following best defines "real estate"?
A. Only the surface of the earth
B. Land, improvements, and the rights associated with ownership
C. Movable structures and equipment
D. Government-owned land only
E. Financial interest in a business
B. Land, improvements, and the rights associated with ownership EXPERT
RATIONALE: Real estate encompasses land, permanent improvements made to land,
and the legal rights that come with ownership.
4. What does the "bundle of rights" in real estate refer to?
A. A collection of mortgage documents
B. The physical boundaries of a property
C. A set of legal rights associated with property ownership
D. Zoning regulations
E. Rental income streams
C. A set of legal rights associated with property ownership EXPERT
RATIONALE: The bundle of rights includes the right to use, enjoy, exclude others, dispose
of, and possess property.
5. Which right in the bundle of rights allows an owner to sell or transfer
property?
A. Right of exclusion
,B. Right of possession
C. Right of disposition
D. Right of enjoyment
E. Right of control
C. Right of disposition EXPERT RATIONALE: The right of disposition allows an
owner to sell, lease, gift, or otherwise transfer their property to another party.
6. Which of the following is an example of a fixture?
A. A portable dishwasher
B. A ceiling fan permanently installed
C. A area rug
D. A potted plant
E. A laptop computer
B. A ceiling fan permanently installed EXPERT RATIONALE: A fixture is personal
property that has been permanently attached to real property, making it part of the real
estate.
7. The acronym MARIA is used to determine whether an item is a fixture.
What does the "M" stand for?
A. Market value
B. Method of attachment
C. Mortgage interest
D. Municipal approval
E. Mineral rights
, B. Method of attachment EXPERT RATIONALE: MARIA stands for Method of
attachment, Adaptability, Relationship of parties, Intent, and Agreement — used to
determine fixture status.
8. Which of the following is NOT one of the physical characteristics of land?
A. Immobility
B. Indestructibility
C. Scarcity
D. Nonhomogeneity
E. Liquidity
E. Liquidity EXPERT RATIONALE: The physical characteristics of land are
immobility, indestructibility, and nonhomogeneity (uniqueness). Liquidity is a financial
concept, not a physical characteristic.
9. What does "nonhomogeneity" mean as a characteristic of land?
A. All land is equally valued
B. No two parcels of land are exactly alike
C. Land can be moved from place to place
D. Land loses value over time
E. Land is owned equally by all citizens
B. No two parcels of land are exactly alike EXPERT RATIONALE:
Nonhomogeneity means every parcel of land is unique in terms of location, topography,
and other characteristics.
10. What is the economic characteristic of land known as "situs"?
A. The physical size of the parcel
SCHOOL EXAM 2026 | VERIFIED ACTUAL
QUESTIONS & SOLUTIONS | TEXAS REAL ESTATE
PREP STUDY GUIDE
• This study guide contains 200 verified exam-style questions covering the full scope
of the Principles of Real Estate I exam as prepared for the Texas Real Estate license
exam under Champions School of Real Estate 2026 curriculum.
• Use this material by reading each question carefully, selecting your answer
mentally before checking the highlighted correct option and EXPERT RATIONALE
below it — this active recall method maximizes retention.
1. What is real property?
A. Personal belongings and movable items
B. Stocks, bonds, and financial instruments
C. Land and anything permanently attached to it
D. Intellectual property and copyrights
E. Leasehold interests only
C. Land and anything permanently attached to it EXPERT RATIONALE: Real
property includes land and all permanent attachments such as buildings, fences, and
fixtures — distinguished from personal property which is movable.
2. What is personal property also known as?
A. Real estate
B. Fixture
C. Chattel
D. Encumbrance
E. Freehold
, C. Chattel EXPERT RATIONALE: Personal property, or chattel, refers to movable
items not permanently attached to land. It is distinct from real property.
3. Which of the following best defines "real estate"?
A. Only the surface of the earth
B. Land, improvements, and the rights associated with ownership
C. Movable structures and equipment
D. Government-owned land only
E. Financial interest in a business
B. Land, improvements, and the rights associated with ownership EXPERT
RATIONALE: Real estate encompasses land, permanent improvements made to land,
and the legal rights that come with ownership.
4. What does the "bundle of rights" in real estate refer to?
A. A collection of mortgage documents
B. The physical boundaries of a property
C. A set of legal rights associated with property ownership
D. Zoning regulations
E. Rental income streams
C. A set of legal rights associated with property ownership EXPERT
RATIONALE: The bundle of rights includes the right to use, enjoy, exclude others, dispose
of, and possess property.
5. Which right in the bundle of rights allows an owner to sell or transfer
property?
A. Right of exclusion
,B. Right of possession
C. Right of disposition
D. Right of enjoyment
E. Right of control
C. Right of disposition EXPERT RATIONALE: The right of disposition allows an
owner to sell, lease, gift, or otherwise transfer their property to another party.
6. Which of the following is an example of a fixture?
A. A portable dishwasher
B. A ceiling fan permanently installed
C. A area rug
D. A potted plant
E. A laptop computer
B. A ceiling fan permanently installed EXPERT RATIONALE: A fixture is personal
property that has been permanently attached to real property, making it part of the real
estate.
7. The acronym MARIA is used to determine whether an item is a fixture.
What does the "M" stand for?
A. Market value
B. Method of attachment
C. Mortgage interest
D. Municipal approval
E. Mineral rights
, B. Method of attachment EXPERT RATIONALE: MARIA stands for Method of
attachment, Adaptability, Relationship of parties, Intent, and Agreement — used to
determine fixture status.
8. Which of the following is NOT one of the physical characteristics of land?
A. Immobility
B. Indestructibility
C. Scarcity
D. Nonhomogeneity
E. Liquidity
E. Liquidity EXPERT RATIONALE: The physical characteristics of land are
immobility, indestructibility, and nonhomogeneity (uniqueness). Liquidity is a financial
concept, not a physical characteristic.
9. What does "nonhomogeneity" mean as a characteristic of land?
A. All land is equally valued
B. No two parcels of land are exactly alike
C. Land can be moved from place to place
D. Land loses value over time
E. Land is owned equally by all citizens
B. No two parcels of land are exactly alike EXPERT RATIONALE:
Nonhomogeneity means every parcel of land is unique in terms of location, topography,
and other characteristics.
10. What is the economic characteristic of land known as "situs"?
A. The physical size of the parcel
