Texas Real Estate Exam Prep (From PearsonVUE and & Champions National Exam Prep)

Texas Real Estate Exam Prep (From PearsonVUE and & Champions National Exam Prep) A property owner has decided to do some landscaping work on his yard. he has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of: a) encroachments b) improvements c) surface rights d) emblements b) improvements A property owner has a waterfront lot on a stream. He has the right to use the water from the stream. What is this right called? a) riparian b) littoral c) appropriative d) appropriation a) riparian A commercial tenant is aware that his lease will expire at the end of the month. He has begun to disassemble his display cabinets and shelves. Which of the following statements about this is true? A) he cannot take them without first obtaining written permission from the landlord. b) if the landlord wants them, he can pay the tenant and the tenant must leave them c) The tenant can take these as they are trade fixtures d) he must disclose to the landlord that he plans to take them c) the tenant can take these as they are trade fixtures A seller is attending the closing on his property. The title company has discovered an unsatisfied M&M lien on the property. Which of the following is the most likely reason for the lien? a) a workman on the property left tools behind b) unpaid personal property taxes c) plumbing work that was completed but never paid for d) a judgment c) plumbing work that was completed but never paid for A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of: a) annexation b) encroachment c) appurtenance d) license b) encroachment A father gives his son a life estate on a property. The son leases the property. The tenant dies. What happens to the property? a) it reverts to the father b) it goes to the remainderman c) it goes back to the son until he dies d) it goes to the son's heirs c) it goes back to the son until he dies A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. The children: a) are remaindermen b) have fee simple determinable c) have a life estate d) have a dominant interest in the property a) are remaindermen Which of the following statements about an easement is true? a) an easement is a benefit to the servient property owner b) an easement is an encroachment c) an easement is a benefit to the dominant property owner d) an easement in gross belongs to or passes with the land c) an easement is a benefit to the dominant property owner P, Q, and R are joint tenants, P wants to sell the property, but Q and R do not. What can P do? a) file an injunction against the other owners b) seek a writ of execution c) file a suit for partition d) get a release c) file a suit for partition A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D have? a) joint tenants b) tenants by the entirety c) tenants in common d) tenants in severalty c) tenants in common Under what right can the government change property use from commercial to residential only? a) Police Power b) Eminent Domain c) Taxation d) Escheat a) Police Power Ownership of the common areas of condominiums is most likely to be: a) joint tenancy b) tenancy by the entirety c) tenancy in common d) sole ownership c) tenancy in common What should a buyer do to ensure that he is getting the best title to real property? a) get an attorney's opinion of title b) get title insurance c) get a special warranty deed d) get a general warranty deed d) get a general warranty deed Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any claims in the property? a) the covenant of seizen b) the covenant against encumbrances c) the covenant of quiet enjoyment d) the covenant of warranty forever c) the covenant of quiet enjoyment Excess money at a foreclosure sale goes to: a) the borrower b) the lender c) the courts d) the trustee a) the borrower The required distance between buildings and a federally protected endangered species wetlands, two incompatible uses, is an example of: a) space determined by deed restrictions b) Condemnation c) a buffer zone d) space determined by zoning c) a buffer zone After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the foreclosure sale. This is called: a) right of first refusal b) right of redemption c) deed in lieu of foreclosure d) an equitable estate b) right of redemption A couple purchased a condominium. The complex has an exercise room for all residents. The couple does not use the exercise room and does not want to pay the monthly fee for the use of the facility. What can they do to avoid this fee? A) they can deduct the appropriate amount from their monthly condo fees b) they can have an attorney send a letter to the homeowner's association stating their intention to not pay and then stop paying the fee. C) they must pay the fee as they have a tenancy in common interest in all common areas. D) they can lease their condo as the landlords they would not have to pay the fee. c) they must pay the fee as they have a tenancy in common interest in all common areas Which of the following is personal property? a) a lease b) a fixture c) an easement d) a freehold a) a lease A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes is will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success? a) a percentage lease b) a net lease c) a gross lease d) a sale and leaseback a) a percentage lease A buyer has purchased a property and after closing the seller will continue to occupy the property. this is an example of: a) subletting b) assignment c) sale and leaseback d) a ground lease c) sale and leaseback Your clients will be able to qualify for financing for a property they wish to purchase in about six months, after they have had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the six months? a) sale and leaseback b) right of first refusal c) lease with an option to buy d) graduated lease c) lease with an option to buy Tenants have signed a 3-year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true? a) the tenants can stay until the end of the lease b) the tenants have to move if the new owners give them 30 days notice c) the tenants must move immediately d) the tenants can stay until the new owner has them evicted a) the tenants can stay until the end of the lease A developer decides to build a commercial property in the middle of a residential subdivision. What is required? a) approval from surrounding property owners b) a variance c) a non-conforming use designation d) this would violate deed restrictions and cannot be done b) a variance A zoning ordinance would directly affect which of the following? a) a buffer zone b) traffic at certain hours of the day c) the concentration of housing in a residential area d) the style and appearance of construction c) the concentration of housing in a residential area If a person dies without a will, who receives their estate? a) spouse and children b) siblings c) escheat to state d) parents a) spouse and children In order for a tenant to claim relief for constructive eviction: a) the landlord must have intentionally withheld required repairs or maintenance b) any defects must be deemed to present a health hazard to the tenants c) the tenant must prove continuous residence in the premises d) the defect must be related to either heating or water systems a) the landlord must have intentionally withheld required repairs or maintenance A buyer purchases a furnished condominium apartment as an investment. The document that evidences the buyer's ownership of the furniture is a: a) special warranty deed b) homeowner's insurance policy c) bill of sale d) buyer's inventory c) bill of sale A broker who enters into a property management contract is considered a: a) fiduciary b) principal c) trustee d) trustor a) fiduciary A buyer's interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as: a) legal title b) equitable interest c) fee simple determinable d) an option to purchase b) equitable interest The appropriate time for a selling broker to explain the agency relationship to a prospective buyer is: a) at their initial meeting b) after they buyer has viewed a number of properties c) when the buyer is prepared to sign a purchase agreement d) at closing a) at their initial meeting