Texas Real Estate Exam (National) UPDATED ACTUAL
QUESTIONS AND CORRECT Answers
real property the tangible real estate and intangible rights associated with the ownership of
real estate
-transfers by deed or will
personal property a right or interest in things of a temporary or movable nature; anything not
classed as real property (chattel, personalty)
-transfers by a bill of state
fixture personal property that has been attached in such a way as to make it real
property
-"installed" often indicates permanent attachment
-annexation: the process of attaching
-severed: real property becoming personal property
trade fixture objects affixed to leased property that are owned by and necessary for the
tenant's trade or business
-accession: acquiring property if trade fixtures are not removed prior to the
termination of the lease
legal land description methods metes and bounds, the rectangular survey system, lot-block-tract system,
monuments
physical characteristics of land (DUI) -durability
-uniqueness
-immobility
economic characteristics of land (SAFE) -situs
-alteration
-fixity
-economic scarcity
, encumbrance any claim or liability attached to real property that may lessen the owner's
bundle of rights or the value of the property
-lien, claim, liability, judgment, encroachment, lease, easement, deed
restriction, etc.
-release is the best way to get rid of it
lien a charge against property as security for a debt
voluntary lien when a person takes actions that places a lien on his or her own property
-example: taking out a mortgage or home improvement loan
involuntary lien property owner doesn't take any action to initiate them
-created by law
-can be statutory or equitable
-statutory: federal tax liens, ad valorem tax liens, judgement liens
-equitable: arise out of common law and include seller (vendor) or buyer
(vendee) liens
encroachment a physical intrusion on someone else's property without direct permission
deed restrictions (CC&R's) sets limits on how the property may be used by the owner (covenants,
conditions, & restrictions)
-created by the grantor
easement a right to use part or all of another individual's land or property for a specific
purpose and length of time
estate an interest in real property
freehold estate the property owner has actual ownership and possession of the land, which
lasts for an unspecified period of time
statutory estate created by law
-community property & homestead in Texas
forms of ownership -individual ownership
-co-ownership
-held in trust
types of co-ownership -tenancy in common
-joint tenancy
-community property
-partnerships
held in trust a property is held by one party for the benefit of another
police power power given to a municipality to regulate and control the character and use of
property for the health, safety and general welfare ofthe public
-most common example: zoning
eminent domain the power of the government to take private property from an owner at all
times
-condemnation: the process of taking private property
QUESTIONS AND CORRECT Answers
real property the tangible real estate and intangible rights associated with the ownership of
real estate
-transfers by deed or will
personal property a right or interest in things of a temporary or movable nature; anything not
classed as real property (chattel, personalty)
-transfers by a bill of state
fixture personal property that has been attached in such a way as to make it real
property
-"installed" often indicates permanent attachment
-annexation: the process of attaching
-severed: real property becoming personal property
trade fixture objects affixed to leased property that are owned by and necessary for the
tenant's trade or business
-accession: acquiring property if trade fixtures are not removed prior to the
termination of the lease
legal land description methods metes and bounds, the rectangular survey system, lot-block-tract system,
monuments
physical characteristics of land (DUI) -durability
-uniqueness
-immobility
economic characteristics of land (SAFE) -situs
-alteration
-fixity
-economic scarcity
, encumbrance any claim or liability attached to real property that may lessen the owner's
bundle of rights or the value of the property
-lien, claim, liability, judgment, encroachment, lease, easement, deed
restriction, etc.
-release is the best way to get rid of it
lien a charge against property as security for a debt
voluntary lien when a person takes actions that places a lien on his or her own property
-example: taking out a mortgage or home improvement loan
involuntary lien property owner doesn't take any action to initiate them
-created by law
-can be statutory or equitable
-statutory: federal tax liens, ad valorem tax liens, judgement liens
-equitable: arise out of common law and include seller (vendor) or buyer
(vendee) liens
encroachment a physical intrusion on someone else's property without direct permission
deed restrictions (CC&R's) sets limits on how the property may be used by the owner (covenants,
conditions, & restrictions)
-created by the grantor
easement a right to use part or all of another individual's land or property for a specific
purpose and length of time
estate an interest in real property
freehold estate the property owner has actual ownership and possession of the land, which
lasts for an unspecified period of time
statutory estate created by law
-community property & homestead in Texas
forms of ownership -individual ownership
-co-ownership
-held in trust
types of co-ownership -tenancy in common
-joint tenancy
-community property
-partnerships
held in trust a property is held by one party for the benefit of another
police power power given to a municipality to regulate and control the character and use of
property for the health, safety and general welfare ofthe public
-most common example: zoning
eminent domain the power of the government to take private property from an owner at all
times
-condemnation: the process of taking private property
