ANSWERS
1. Explain the significance of trade fixtures in a commercial lease
agreement and the responsibilities of the tenant regarding their removal.
Trade fixtures are considered part of the real estate and cannot be
removed by the tenant.
Tenants must remove trade fixtures before the lease ends to avoid
penalties.
Trade fixtures can be sold to the landlord at the end of the lease
term.
Tenants are not responsible for trade fixtures as they belong to the
property owner.
2. Into what three areas of rights can land be divided?
Surface rights, subsurface rights, and air
rights Visible rights, nondisabled rights, and
sight rights Investment rights, market rights and
tidal rights Shore rights, subsoil rights, soil rights
3. What term is used to describe property that is temporary or movable
and not part of real property?
Real Property
Personal
Property
Intangible Property
Fixed Property
4. If a tenant farmer has planted crops on a property and the lease is
terminated before harvest, what rights does the tenant have regarding the
,crops under the concept of emblements?
, The tenant must leave the crops for the new owner.
The tenant has the right to harvest the crops even after the lease
ends.
The tenant loses all rights to the crops immediately upon lease
termination.
The tenant can sell the crops to the new owner.
5. Explain the significance of TREC promulgated forms in real
estate transactions in Texas.
They are optional documents that can be used at the discretion of
the property owner.
They ensure that all real estate transactions comply with
Texas law and protect public interests.
They are only applicable to commercial real estate transactions.
They are created solely by real estate agents without legal
oversight.
6. How many members are on the Texas Real Estate Commission
(TREC)? 5 members
7 members
9 members
11 members
7. If a property owner sells the subsurface rights of their land to a mining
company while retaining the surface and air rights, what implications could
this have for the owner and the mining company?
The owner can still control all activities on the land.
The mining company can extract minerals without any restrictions.
, The owner may face limitations on how they can use the surface
of the land.
The mining company must obtain additional permits for air rights.
8. Who approves the contract forms drafted by the Broker/Lawyer
Committee...?
TREC
Texas Association of Realtors
National Association of
Realtors Texas Bar
Association
9. What are trade fixtures in the context of real estate, and why are
they automatically excluded from the sale of a property?
They are personal property used in business operations and must
be removed before lease expiration.
They are permanent structures that cannot be removed from the
property.
They are items that belong to the landlord and must remain with the
property.
They are fixtures that increase the value of the property and are
included in the sale.
10. To take the state licensing exam, an applicant for licensure must
successfully complete an approved prelicense course of at least ____
hours.
90
60
25
75