Texas Real Estate License Exam Prep ACTUAL QUESTIONS AND CORRECT ANSWERS

Texas Real Estate License Exam Prep
ACTUAL QUESTIONS AND CORRECT
ANSWERS

Abstract of Title - CORRECT ANSWERS✅✅condensed history of a title to a particular
piece of real estate, including a summary of the original grant, etc...


Acceleration Clause - CORRECT ANSWERS✅✅clause in a mortgage that can be enforced
to make the entire debt due immediately if the mortgagor defaults.


Accretion - CORRECT ANSWERS✅✅addition to the land through natural causes usually
by a change in water flow


Adjustable Rate Mortgage - CORRECT ANSWERS✅✅mortgage that shifts the risk or
reward of changing interest rates from the lender to the borrower


Agent - CORRECT ANSWERS✅✅person to authorized to represent another



Appraisal - CORRECT ANSWERS✅✅estimate of value of something, usually a property



Appurtenant Easement - CORRECT ANSWERS✅✅right to use adjoining property that
transfers with the land


Asbestos - CORRECT ANSWERS✅✅mineral that was used for insulation, considered
harmful if disturbed or exposed


Balloon Payment - CORRECT ANSWERS✅✅when the amortized payment of a mortgage
remains constant over the period of the loan but leaves an outstanding balance to be paid at
the end

,Bilateral Contract - CORRECT ANSWERS✅✅two or more parties are bound to act as
described


Blockbusting - CORRECT ANSWERS✅✅illegal practice of inducing homeowners to sell
their property by making representations about the prospective entry of persons of a certain
race into the neighborhood


Breach of Contract - CORRECT ANSWERS✅✅failure to perform provisions of a contract
without a legal excuse


Cloud on Title - CORRECT ANSWERS✅✅claim or interest revealed by a title search



Commingling - CORRECT ANSWERS✅✅illegal act of real estate broker mixing funds
with his own


Common Elements - CORRECT ANSWERS✅✅parts of property that are necessary or
convenient to the existence, maintenance, & safety of a condo and are normally in common
use


Condominium - CORRECT ANSWERS✅✅absolute OWNERSHIP of a unit in a multi-unit
building


Consideration - CORRECT ANSWERS✅✅benefit, interest, or value that induces a promise,
and the glue that binds a contract


Contribution - CORRECT ANSWERS✅✅appraisal principle that states that the value of
any component of a property is what gives to the value of the whole


Conversion - CORRECT ANSWERS✅✅process of changing a property's status from rental
to condo


Conveyance - CORRECT ANSWERS✅✅term to refer to any document that transfers title

, Cooperative - CORRECT ANSWERS✅✅LEASES an apartment and has stock in the
corporation


Constructive Eviction - CORRECT ANSWERS✅✅landlord breaches a lease by allowing
the property to fall into severe disrepair


Cost Approach - CORRECT ANSWERS✅✅type of value estimate approach in which value
equals the estimated land value plus reproduction costs of any improvements, after
depreciation costs have been subtracted


Counteroffer - CORRECT ANSWERS✅✅new offer made in response to an offer received



Covenant Against Encumbrances - CORRECT ANSWERS✅✅situation in which the grantor
warrants that the property is free from liens and encumbrances


Covenant of Further Assurance - CORRECT ANSWERS✅✅the grantor promises to obtain
and deliver any instrument needed to make the title good


Covenant of Quiet Enjoyment - CORRECT ANSWERS✅✅grantor guarantees that the
grantees title is good against anyone who challenges the grantees ownership


Covenant of Warranty Forever - CORRECT ANSWERS✅✅grantor promises that if at any
time in the future the title fails, he will be liable


Datum - CORRECT ANSWERS✅✅a point, line, or surface from which elevations are
measured


Deed Restriction - CORRECT ANSWERS✅✅clauses in a deed that limit the future use of
the property


Depreciation - CORRECT ANSWERS✅✅loss of value in any property regardless of the
specific cause, in an appraisal