TEXAS REAL ESTATE ACTUAL FINAL EXAM QUESTIONS
AND ANSWERS SURE A+
✔✔fee simple subject to a condition subsequent - ✔✔the former owner holds a right of
reentry
✔✔life estate - ✔✔gives the owner the entire bundle of rights, but the estate ends with
the owner's life or the life of another person, as established in the deed.
✔✔Remainderman - ✔✔third party who will gain eventual ownership
✔✔Periodic estate - ✔✔Lease with regular rent payments and no stated ending date
✔✔Estate for years - ✔✔Lease for a definite period of time
✔✔Estate at will - ✔✔A lease that can be terminated by either party at will, without
notice
✔✔Estate at Sufferance - ✔✔occurs when a tenant keeps possession of the property
after the lease terminates
✔✔Gross Lease - ✔✔Tenant pays rents, landlord pays all expenses of property; most
common form of residential lease
✔✔Net Lease - ✔✔A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
✔✔Percentage Lease - ✔✔bases the tenant's rent on a percentage of the gross volume
of the tenant's business
✔✔Graduated Lease - ✔✔long-term lease where the rent amount is adjusted over time
based on some set rules (for example, every two years based on the consumer price
index, or every five years based on a re-appraisal of the property).
✔✔Ground Lease - ✔✔A lease of land only, on which the tenant usually owns a building
or is required to build as specified in the lease. Such leases are usually long-term net
leases; the tenant's rights and obligations continue until the lease expires or is
terminated through default.
✔✔Voluntary Lien - ✔✔A lien placed on property with the knowledge and consent of the
property owner.
✔✔Specific Lien - ✔✔One that attaches to a particular property.
, ✔✔General Lien - ✔✔A lien that attaches to all property owned by an individual. Real
and personal.
✔✔Mortgage Lien - ✔✔lender's claim against real estate
✔✔Mechanic's Lien - ✔✔applies to individuals or companies who supplied labor or
materials that improve a property; involuntary
✔✔Tax Lien - ✔✔attaches to a property when the owner's property taxes aren't paid;
involuntary.
✔✔Judgement Lien - ✔✔a lien placed on property to settle a judgement from a lawsuit;
involuntary.
✔✔Surface Rights - ✔✔the rights to use the surface of the earth
✔✔Subsurface Rights - ✔✔Ownership rights in a parcel of real estate to the water,
minerals, gas, oil, and so forth that lie beneath the surface of the property.
✔✔Air Rights - ✔✔The right to use the open space above a property, usually allowing
the surface to be used for another purpose.
✔✔Riparian Rights - ✔✔A legal right of a landowner who owns land next to a natural
watercourse to reasonable use of whatever water flows past the property.
✔✔Littoral Rights - ✔✔rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake
✔✔Grantor - ✔✔must sign the deed and the signature must be acknowledged
✔✔Grantee - ✔✔The person receiving title to real estate
✔✔Granting Clause - ✔✔words of conveyance that states the grantor's intention to
convey the property
✔✔Habendum Clause - ✔✔have, hold
✔✔General Warranty Deed - ✔✔A deed in which the grantor fully warrants good, clear
title to the premises. Used in most real estate deed transfers, a general warranty deed
offers the greatest protection of any deed.
✔✔Special Warranty Deed - ✔✔covers only the current grantor's time of ownership
✔✔Bargain and Sale Deed - ✔✔Foreclosure sale
AND ANSWERS SURE A+
✔✔fee simple subject to a condition subsequent - ✔✔the former owner holds a right of
reentry
✔✔life estate - ✔✔gives the owner the entire bundle of rights, but the estate ends with
the owner's life or the life of another person, as established in the deed.
✔✔Remainderman - ✔✔third party who will gain eventual ownership
✔✔Periodic estate - ✔✔Lease with regular rent payments and no stated ending date
✔✔Estate for years - ✔✔Lease for a definite period of time
✔✔Estate at will - ✔✔A lease that can be terminated by either party at will, without
notice
✔✔Estate at Sufferance - ✔✔occurs when a tenant keeps possession of the property
after the lease terminates
✔✔Gross Lease - ✔✔Tenant pays rents, landlord pays all expenses of property; most
common form of residential lease
✔✔Net Lease - ✔✔A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
✔✔Percentage Lease - ✔✔bases the tenant's rent on a percentage of the gross volume
of the tenant's business
✔✔Graduated Lease - ✔✔long-term lease where the rent amount is adjusted over time
based on some set rules (for example, every two years based on the consumer price
index, or every five years based on a re-appraisal of the property).
✔✔Ground Lease - ✔✔A lease of land only, on which the tenant usually owns a building
or is required to build as specified in the lease. Such leases are usually long-term net
leases; the tenant's rights and obligations continue until the lease expires or is
terminated through default.
✔✔Voluntary Lien - ✔✔A lien placed on property with the knowledge and consent of the
property owner.
✔✔Specific Lien - ✔✔One that attaches to a particular property.
, ✔✔General Lien - ✔✔A lien that attaches to all property owned by an individual. Real
and personal.
✔✔Mortgage Lien - ✔✔lender's claim against real estate
✔✔Mechanic's Lien - ✔✔applies to individuals or companies who supplied labor or
materials that improve a property; involuntary
✔✔Tax Lien - ✔✔attaches to a property when the owner's property taxes aren't paid;
involuntary.
✔✔Judgement Lien - ✔✔a lien placed on property to settle a judgement from a lawsuit;
involuntary.
✔✔Surface Rights - ✔✔the rights to use the surface of the earth
✔✔Subsurface Rights - ✔✔Ownership rights in a parcel of real estate to the water,
minerals, gas, oil, and so forth that lie beneath the surface of the property.
✔✔Air Rights - ✔✔The right to use the open space above a property, usually allowing
the surface to be used for another purpose.
✔✔Riparian Rights - ✔✔A legal right of a landowner who owns land next to a natural
watercourse to reasonable use of whatever water flows past the property.
✔✔Littoral Rights - ✔✔rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake
✔✔Grantor - ✔✔must sign the deed and the signature must be acknowledged
✔✔Grantee - ✔✔The person receiving title to real estate
✔✔Granting Clause - ✔✔words of conveyance that states the grantor's intention to
convey the property
✔✔Habendum Clause - ✔✔have, hold
✔✔General Warranty Deed - ✔✔A deed in which the grantor fully warrants good, clear
title to the premises. Used in most real estate deed transfers, a general warranty deed
offers the greatest protection of any deed.
✔✔Special Warranty Deed - ✔✔covers only the current grantor's time of ownership
✔✔Bargain and Sale Deed - ✔✔Foreclosure sale
