Texas Real Estate Exam Practice
Guide with Expert Graded A+
Answers | Latest Edition
1. Texas Real Estate Commission (TREC) - ANSWER -created in 1949
-purpose: to administer the provisions of the License Act
-authority to make rules and regulations
-9 members (3 represent the general public, 6 are real estate brokers)
-all appointed by the governor and approved by the Senate
-serve 6 year terms
-has the power to subpoena books, records, and witnesses
-has the power to issue or revoke Real Estate Licenses
2. involuntary lien - ANSWER 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
3. encroachment - ANSWER a physical intrusion on someone else's property
without direct permission
,4. deed restrictions (CC&R's) - ANSWER sets limits on how the property may
be used by the owner (covenants, conditions, & restrictions)
-created by the grantor
5. easement - ANSWER a right to use part or all of another individual's land
or property for a specific purpose and length of time
6. estate - ANSWER an interest in real property
7. freehold estate - ANSWER the property owner has actual ownership and
possession of the land, which lasts for an unspecified period of time
8. statutory estate - ANSWER created by law
-community property & homestead in Texas
9. forms of ownership - ANSWER -individual ownership
-co-ownership
-held in trust
10.types of co-ownership - ANSWER -tenancy in common
-joint tenancy
-community property
-partnerships
11.held in trust - ANSWER a property is held by one party for the benefit of
another
,12.police power - ANSWER power given to a municipality to regulate and
control the character and use of property for the health, safety and general
welfare of the public
-most common example: zoning
13.eminent domain - ANSWER the power of the government to take private
property from an owner at all times
-condemnation: the process of taking private property
14.property taxes - ANSWER "ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
15.Broker Lawyer Committee - ANSWER -writes promulgated contract forms
-13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the
President of the State Bar Association, 1 is a public member appointed by the
governor)
16.Real Estate Recovery Fund - ANSWER created by TREC to pay aggrieved
persons who suffered a monetary loss due to unscrupulous acts of the
licensees
-persons can receive up to 3 times the amount of money lost
-when an amount is paid out of it, the license of the individual is automatically
revoked or suspended without a hearing (cannot be recovered until the fund has
been repaid with interest)
17.real property - ANSWER the tangible real estate and intangible rights
associated with the ownership of real estate
-transfers by deed or will
, 18.personal property - ANSWER a right or interest in things of a temporary or
movable nature; anything not classed as real property (chattel, personality)
-transfers by a bill of state
19.fixture - ANSWER 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
20.trade fixture - ANSWER 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
21.legal land description methods - ANSWER metes and bounds, the
rectangular survey system, lot-block-tract system, monuments
22.physical characteristics of land (DUI) - ANSWER -durability
-uniqueness
-immobility
23.economic characteristics of land (SAFE) - ANSWER -situs
-alteration
-fixity
-economic scarcity
Guide with Expert Graded A+
Answers | Latest Edition
1. Texas Real Estate Commission (TREC) - ANSWER -created in 1949
-purpose: to administer the provisions of the License Act
-authority to make rules and regulations
-9 members (3 represent the general public, 6 are real estate brokers)
-all appointed by the governor and approved by the Senate
-serve 6 year terms
-has the power to subpoena books, records, and witnesses
-has the power to issue or revoke Real Estate Licenses
2. involuntary lien - ANSWER 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
3. encroachment - ANSWER a physical intrusion on someone else's property
without direct permission
,4. deed restrictions (CC&R's) - ANSWER sets limits on how the property may
be used by the owner (covenants, conditions, & restrictions)
-created by the grantor
5. easement - ANSWER a right to use part or all of another individual's land
or property for a specific purpose and length of time
6. estate - ANSWER an interest in real property
7. freehold estate - ANSWER the property owner has actual ownership and
possession of the land, which lasts for an unspecified period of time
8. statutory estate - ANSWER created by law
-community property & homestead in Texas
9. forms of ownership - ANSWER -individual ownership
-co-ownership
-held in trust
10.types of co-ownership - ANSWER -tenancy in common
-joint tenancy
-community property
-partnerships
11.held in trust - ANSWER a property is held by one party for the benefit of
another
,12.police power - ANSWER power given to a municipality to regulate and
control the character and use of property for the health, safety and general
welfare of the public
-most common example: zoning
13.eminent domain - ANSWER the power of the government to take private
property from an owner at all times
-condemnation: the process of taking private property
14.property taxes - ANSWER "ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
15.Broker Lawyer Committee - ANSWER -writes promulgated contract forms
-13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the
President of the State Bar Association, 1 is a public member appointed by the
governor)
16.Real Estate Recovery Fund - ANSWER created by TREC to pay aggrieved
persons who suffered a monetary loss due to unscrupulous acts of the
licensees
-persons can receive up to 3 times the amount of money lost
-when an amount is paid out of it, the license of the individual is automatically
revoked or suspended without a hearing (cannot be recovered until the fund has
been repaid with interest)
17.real property - ANSWER the tangible real estate and intangible rights
associated with the ownership of real estate
-transfers by deed or will
, 18.personal property - ANSWER a right or interest in things of a temporary or
movable nature; anything not classed as real property (chattel, personality)
-transfers by a bill of state
19.fixture - ANSWER 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
20.trade fixture - ANSWER 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
21.legal land description methods - ANSWER metes and bounds, the
rectangular survey system, lot-block-tract system, monuments
22.physical characteristics of land (DUI) - ANSWER -durability
-uniqueness
-immobility
23.economic characteristics of land (SAFE) - ANSWER -situs
-alteration
-fixity
-economic scarcity
