TEXAS REAL ESTATE PRACTICE
EXAM 2026-2027 (GRADED A+)
A farmer temporarily installs produce coolers in a leased farm stand in order to
prevent spoilage. The coolers would be considered which of the following?
a) Trade fixtures that are real property.
b) Trade fixtures that are personal property.
c) Temporary real property.
d) Emblements. - ANSWER-b) Trade fixtures that are personal property.
Property can be converted from real to personal property and from personal property
to real property by means of which processes respectively?
a) Assemblage and plottage.
b) Application and dissolution.
c) Severance and affixing.
d) Planting and harvesting. - ANSWER-c) Severance and affixing.
The highest form of ownership interest one can acquire in real estate is the:
a) legal life estate.
b) Conventional life estate.
c) Defeasible fee simple estate.
d) Absolute fee simple estate. - ANSWER-d) Absolute fee simple estate.
The distinguishing feature of a defeasible fee simple estate is that:
a) It could be passed onto heirs.
b) It has no restrictions on use.
c) The estate may revert to a grantor or heirs if the prescribed use changes.
d) It is of unlimited duration. - ANSWER-c) The estate may revert to a grantor or
heirs if the prescribed use changes.
Maria acquires a property from her uncle Alfonso. When Maria dies the estate will
pass to Alfonso's other niece Serena. The type of
estate that Maria has in the property is:
a) conventional life estate.
b) Legal life estate.
c) Fee simple defeasible estate.
d) Tenancy by the entirety's. - ANSWER-a) conventional life estate.
One difference between a cooperative estate and a condominium estate is that:
a) a condominium owner owns a unit of air space whereas the co-op owner owns a
proprietary lease.
,b) A condominium sale adversely affects other unit owners.
c) The co-op owner owns stock and a freehold real estate interest whereas the
condominium owner simply a proprietary lease.
d) The condominium owner owns the common elements and the air space whereas
the co-op owner only owns the apartment. - ANSWER-a) a condominium owner
owns a unit of air space whereas the co-op owner owns a proprietary lease.
Who are the essential parties involved in an estate and trust?
a) Owner trustor, and lawyer.
b) Owner, trustor, and trustee.
c) Trustee, title company, and beneficiary.
d) Trustor, trustee, and beneficiary. - ANSWER-d) Trustor, trustee, and beneficiary.
A condominium owner enjoys a:
a) share in an association that owns one's apartment.
b) Tenancy in common interest in air space and common areas of the property.
c) Fee simple ownership of the airspace in a unit and an undivided share of the
entire property's common areas.
d) The simple ownership of a pro rata share of the entire property. - ANSWER-c) Fee
simple ownership of the airspace in a unit and an undivided share of the entire
property's common areas.
With various types of junior liens, the order of payment priority is generally
established according to:
a) the date of recordation.
b) What form of tax is in question.
c) The order of disbursement.
d) Whether the lien was subordinated. - ANSWER-a) the date of recordation.
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a mortgage lien is
created.
c) A state in which the holder of a mortgage lien receives title to the mortgage and
property until the debt is satisfied.
d) A state in which liens must be recorded to be enforceable. - ANSWER-b) A state
in which a mortgage retains title to the property when a mortgage lien is created.
A property owner has an easement appurtenant on her property. One day the
property is sold to another party who is opposed to the easement. Following the
closing, this particular form of easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property. - ANSWER-b) Transfers with the property.
, What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the property.
d) Assembling all relevant documents in a single place. - ANSWER-c) Giving
constructive notice of one's rights and interests in the property.
What is chain of title?
a) The list of all parties who have ever owned real estate.
b) The bundle of rights linked to the recorded title to a parcel.
c) A chronology of successive owners of record of a parcel of real estate.
d) Involuntary conveyance of title by statutory roles of descent. - ANSWER-c) A
chronology of successive owners of record of a parcel of real estate.
Which of the following provides the strongest evidence of marketable title?
a) A general warranty deed.
b) A title certificate.
c) Title insurance.
d) An attorney's opinion. - ANSWER-c) Title insurance.
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owner's gross income from the property. This kind of
lease is a:
a) triple charge, or triple net lease.
b) Proprietor's lease.
c) Percentage lease.
d) Retailer's gross lease. - ANSWER-c) Percentage lease.
An owner lease has a property to a business in exchange for rent and the tenant is
required to pay all operating expenses as well. This is an example of a _______.
a) Proprietary lease.
b) Percentage lease.
c) Gross lease.
d) Net lease. - ANSWER-d) Net lease.
A lease automatically terminates under which of the following circumstances?
a) The tenant fails to pay rent.
b) The leased property is foreclosed.
c) The tenant goes out of business.
d) The landlord canceled the lease. - ANSWER-b) The leased property is foreclosed.
A county or municipal authority usually grants a certificate of occupancy for new
construction only after:
EXAM 2026-2027 (GRADED A+)
A farmer temporarily installs produce coolers in a leased farm stand in order to
prevent spoilage. The coolers would be considered which of the following?
a) Trade fixtures that are real property.
b) Trade fixtures that are personal property.
c) Temporary real property.
d) Emblements. - ANSWER-b) Trade fixtures that are personal property.
Property can be converted from real to personal property and from personal property
to real property by means of which processes respectively?
a) Assemblage and plottage.
b) Application and dissolution.
c) Severance and affixing.
d) Planting and harvesting. - ANSWER-c) Severance and affixing.
The highest form of ownership interest one can acquire in real estate is the:
a) legal life estate.
b) Conventional life estate.
c) Defeasible fee simple estate.
d) Absolute fee simple estate. - ANSWER-d) Absolute fee simple estate.
The distinguishing feature of a defeasible fee simple estate is that:
a) It could be passed onto heirs.
b) It has no restrictions on use.
c) The estate may revert to a grantor or heirs if the prescribed use changes.
d) It is of unlimited duration. - ANSWER-c) The estate may revert to a grantor or
heirs if the prescribed use changes.
Maria acquires a property from her uncle Alfonso. When Maria dies the estate will
pass to Alfonso's other niece Serena. The type of
estate that Maria has in the property is:
a) conventional life estate.
b) Legal life estate.
c) Fee simple defeasible estate.
d) Tenancy by the entirety's. - ANSWER-a) conventional life estate.
One difference between a cooperative estate and a condominium estate is that:
a) a condominium owner owns a unit of air space whereas the co-op owner owns a
proprietary lease.
,b) A condominium sale adversely affects other unit owners.
c) The co-op owner owns stock and a freehold real estate interest whereas the
condominium owner simply a proprietary lease.
d) The condominium owner owns the common elements and the air space whereas
the co-op owner only owns the apartment. - ANSWER-a) a condominium owner
owns a unit of air space whereas the co-op owner owns a proprietary lease.
Who are the essential parties involved in an estate and trust?
a) Owner trustor, and lawyer.
b) Owner, trustor, and trustee.
c) Trustee, title company, and beneficiary.
d) Trustor, trustee, and beneficiary. - ANSWER-d) Trustor, trustee, and beneficiary.
A condominium owner enjoys a:
a) share in an association that owns one's apartment.
b) Tenancy in common interest in air space and common areas of the property.
c) Fee simple ownership of the airspace in a unit and an undivided share of the
entire property's common areas.
d) The simple ownership of a pro rata share of the entire property. - ANSWER-c) Fee
simple ownership of the airspace in a unit and an undivided share of the entire
property's common areas.
With various types of junior liens, the order of payment priority is generally
established according to:
a) the date of recordation.
b) What form of tax is in question.
c) The order of disbursement.
d) Whether the lien was subordinated. - ANSWER-a) the date of recordation.
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a mortgage lien is
created.
c) A state in which the holder of a mortgage lien receives title to the mortgage and
property until the debt is satisfied.
d) A state in which liens must be recorded to be enforceable. - ANSWER-b) A state
in which a mortgage retains title to the property when a mortgage lien is created.
A property owner has an easement appurtenant on her property. One day the
property is sold to another party who is opposed to the easement. Following the
closing, this particular form of easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property. - ANSWER-b) Transfers with the property.
, What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the property.
d) Assembling all relevant documents in a single place. - ANSWER-c) Giving
constructive notice of one's rights and interests in the property.
What is chain of title?
a) The list of all parties who have ever owned real estate.
b) The bundle of rights linked to the recorded title to a parcel.
c) A chronology of successive owners of record of a parcel of real estate.
d) Involuntary conveyance of title by statutory roles of descent. - ANSWER-c) A
chronology of successive owners of record of a parcel of real estate.
Which of the following provides the strongest evidence of marketable title?
a) A general warranty deed.
b) A title certificate.
c) Title insurance.
d) An attorney's opinion. - ANSWER-c) Title insurance.
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owner's gross income from the property. This kind of
lease is a:
a) triple charge, or triple net lease.
b) Proprietor's lease.
c) Percentage lease.
d) Retailer's gross lease. - ANSWER-c) Percentage lease.
An owner lease has a property to a business in exchange for rent and the tenant is
required to pay all operating expenses as well. This is an example of a _______.
a) Proprietary lease.
b) Percentage lease.
c) Gross lease.
d) Net lease. - ANSWER-d) Net lease.
A lease automatically terminates under which of the following circumstances?
a) The tenant fails to pay rent.
b) The leased property is foreclosed.
c) The tenant goes out of business.
d) The landlord canceled the lease. - ANSWER-b) The leased property is foreclosed.
A county or municipal authority usually grants a certificate of occupancy for new
construction only after:
