Texas Real Estate Exam National Portion
2026 – Verified Questions and Correct
Answers – Real Estate Principles
SECTION 1: PROPERTY RIGHTS & OWNERSHIP (Questions 1-15)
Question 1
Which of the following best describes a fee simple absolute estate?
A. An estate that lasts for the life of a designated person
B. The highest form of ownership interest one can have in real property
C. An estate that terminates upon the occurrence of a specified event
D. An estate held by two or more persons with right of survivorship
Correct Answer: B
Rationale:
• Option A is incorrect – This describes a life estate, which terminates upon
the death of the life tenant.
• Option B is CORRECT – Fee simple absolute represents the most
complete form of ownership, with unlimited duration and the right to
dispose of the property as the owner wishes, subject only to governmental
powers (taxation, eminent domain, police power, escheat).
• Option C is incorrect – This describes a fee simple defeasible or
determinable fee, which can terminate if certain conditions are violated.
, • Option D is incorrect – This describes joint tenancy with right of
survivorship, a form of concurrent ownership, not an estate type.
Question 2
A property description that reads "Beginning at the oak tree, thence north 200 feet,
thence east 150 feet..." is an example of which method of legal description?
A. Lot and block
B. Rectangular survey system
C. Metes and bounds
D. Monument system
Correct Answer: C
Rationale:
• Option A is incorrect – Lot and block descriptions reference recorded plats
and subdivision maps, using lot numbers and block identifiers.
• Option B is incorrect – The rectangular survey system uses principal
meridians, base lines, townships, and ranges to describe property.
• Option C is CORRECT – Metes and bounds descriptions use distances
(metes) and directions (bounds) from a point of beginning, often referencing
natural or artificial monuments like trees or stones.
• Option D is incorrect – While monuments may be referenced in metes and
bounds, "monument system" is not a recognized legal description method.
,Question 3
Which of the following is NOT one of the four government powers that can affect
real property ownership?
A. Escheat
B. Eminent domain
C. Estoppel
D. Police power
Correct Answer: C
Rationale:
• Option A is incorrect – Escheat IS a government power; it allows the state
to acquire property when an owner dies without a will and without heirs.
• Option B is incorrect – Eminent domain IS a government power; it allows
the government to take private property for public use with just
compensation.
• Option C is CORRECT – Estoppel is NOT a government power; it is a
legal doctrine preventing a person from asserting facts contrary to their
previous actions or statements. The four government powers are PETE:
Police power, Eminent domain, Taxation, Escheat.
• Option D is incorrect – Police power IS a government power; it allows
government to regulate property use for public health, safety, and welfare
through zoning and building codes.
Question 4
When two or more persons own property with the right of survivorship, this is
known as:
, A. Tenancy in common
B. Tenancy by the entirety
C. Joint tenancy
D. Community property
Correct Answer: C
Rationale:
• Option A is incorrect – Tenancy in common allows multiple owners but
does NOT include right of survivorship; each tenant's interest passes to their
heirs upon death.
• Option B is incorrect – Tenancy by the entirety is a form of joint ownership
for married couples only, available in some states but less common than
joint tenancy.
• Option C is CORRECT – Joint tenancy includes the right of survivorship,
meaning when one owner dies, their interest automatically passes to the
surviving owner(s).
• Option D is incorrect – Community property is a form of ownership
between spouses in community property states (including Texas), but it does
not automatically include right of survivorship unless specified.
Question 5
The legal concept that allows a person to acquire title to property by openly
possessing it for a statutory period is called:
A. Eminent domain
B. Adverse possession
C. Prescription
D. Accretion
2026 – Verified Questions and Correct
Answers – Real Estate Principles
SECTION 1: PROPERTY RIGHTS & OWNERSHIP (Questions 1-15)
Question 1
Which of the following best describes a fee simple absolute estate?
A. An estate that lasts for the life of a designated person
B. The highest form of ownership interest one can have in real property
C. An estate that terminates upon the occurrence of a specified event
D. An estate held by two or more persons with right of survivorship
Correct Answer: B
Rationale:
• Option A is incorrect – This describes a life estate, which terminates upon
the death of the life tenant.
• Option B is CORRECT – Fee simple absolute represents the most
complete form of ownership, with unlimited duration and the right to
dispose of the property as the owner wishes, subject only to governmental
powers (taxation, eminent domain, police power, escheat).
• Option C is incorrect – This describes a fee simple defeasible or
determinable fee, which can terminate if certain conditions are violated.
, • Option D is incorrect – This describes joint tenancy with right of
survivorship, a form of concurrent ownership, not an estate type.
Question 2
A property description that reads "Beginning at the oak tree, thence north 200 feet,
thence east 150 feet..." is an example of which method of legal description?
A. Lot and block
B. Rectangular survey system
C. Metes and bounds
D. Monument system
Correct Answer: C
Rationale:
• Option A is incorrect – Lot and block descriptions reference recorded plats
and subdivision maps, using lot numbers and block identifiers.
• Option B is incorrect – The rectangular survey system uses principal
meridians, base lines, townships, and ranges to describe property.
• Option C is CORRECT – Metes and bounds descriptions use distances
(metes) and directions (bounds) from a point of beginning, often referencing
natural or artificial monuments like trees or stones.
• Option D is incorrect – While monuments may be referenced in metes and
bounds, "monument system" is not a recognized legal description method.
,Question 3
Which of the following is NOT one of the four government powers that can affect
real property ownership?
A. Escheat
B. Eminent domain
C. Estoppel
D. Police power
Correct Answer: C
Rationale:
• Option A is incorrect – Escheat IS a government power; it allows the state
to acquire property when an owner dies without a will and without heirs.
• Option B is incorrect – Eminent domain IS a government power; it allows
the government to take private property for public use with just
compensation.
• Option C is CORRECT – Estoppel is NOT a government power; it is a
legal doctrine preventing a person from asserting facts contrary to their
previous actions or statements. The four government powers are PETE:
Police power, Eminent domain, Taxation, Escheat.
• Option D is incorrect – Police power IS a government power; it allows
government to regulate property use for public health, safety, and welfare
through zoning and building codes.
Question 4
When two or more persons own property with the right of survivorship, this is
known as:
, A. Tenancy in common
B. Tenancy by the entirety
C. Joint tenancy
D. Community property
Correct Answer: C
Rationale:
• Option A is incorrect – Tenancy in common allows multiple owners but
does NOT include right of survivorship; each tenant's interest passes to their
heirs upon death.
• Option B is incorrect – Tenancy by the entirety is a form of joint ownership
for married couples only, available in some states but less common than
joint tenancy.
• Option C is CORRECT – Joint tenancy includes the right of survivorship,
meaning when one owner dies, their interest automatically passes to the
surviving owner(s).
• Option D is incorrect – Community property is a form of ownership
between spouses in community property states (including Texas), but it does
not automatically include right of survivorship unless specified.
Question 5
The legal concept that allows a person to acquire title to property by openly
possessing it for a statutory period is called:
A. Eminent domain
B. Adverse possession
C. Prescription
D. Accretion
