TEXAS REAL ESTATE LICENSE EXAM
PREP 2025/2026 QUESTIONS AND
ANSWERS 100% PASS
Abstract of Title - ANS condensed history of a title to a particular piece of real estate,
including a summary of the original grant, etc...
Acceleration Clause - ANS clause in a mortgage that can be enforced to make the entire debt
due immediately if the mortgagor defaults.
Accretion - ANS addition to the land through natural causes usually by a change in water flow
Adjustable Rate Mortgage - ANS mortgage that shifts the risk or reward of changing interest
rates from the lender to the borrower
Agent - ANS person to authorized to represent another
Appraisal - ANS estimate of value of something, usually a property
Appurtenant Easement - ANS right to use adjoining property that transfers with the land
Asbestos - ANS mineral that was used for insulation, considered harmful if disturbed or
exposed
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Balloon Payment - ANS 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 - ANS two or more parties are bound to act as described
Blockbusting - ANS 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 - ANS failure to perform provisions of a contract without a legal excuse
Cloud on Title - ANS claim or interest revealed by a title search
Commingling - ANS illegal act of real estate broker mixing funds with his own
Common Elements - ANS parts of property that are necessary or convenient to the existence,
maintenance, & safety of a condo and are normally in common use
Condominium - ANS absolute OWNERSHIP of a unit in a multi-unit building
Consideration - ANS benefit, interest, or value that induces a promise, and the glue that
binds a contract
Contribution - ANS appraisal principle that states that the value of any component of a
property is what gives to the value of the whole
Conversion - ANS process of changing a property's status from rental to condo
Conveyance - ANS term to refer to any document that transfers title
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Cooperative - ANS LEASES an apartment and has stock in the corporation
Constructive Eviction - ANS landlord breaches a lease by allowing the property to fall into
severe disrepair
Cost Approach - ANS 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 - ANS new offer made in response to an offer received
Covenant Against Encumbrances - ANS situation in which the grantor warrants that the
property is free from liens and encumbrances
Covenant of Further Assurance - ANS the grantor promises to obtain and deliver any
instrument needed to make the title good
Covenant of Quiet Enjoyment - ANS grantor guarantees that the grantees title is good against
anyone who challenges the grantees ownership
Covenant of Warranty Forever - ANS grantor promises that if at any time in the future the
title fails, he will be liable
Datum - ANS a point, line, or surface from which elevations are measured
Deed Restriction - ANS clauses in a deed that limit the future use of the property
Depreciation - ANS loss of value in any property regardless of the specific cause, in an
appraisal
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
PREP 2025/2026 QUESTIONS AND
ANSWERS 100% PASS
Abstract of Title - ANS condensed history of a title to a particular piece of real estate,
including a summary of the original grant, etc...
Acceleration Clause - ANS clause in a mortgage that can be enforced to make the entire debt
due immediately if the mortgagor defaults.
Accretion - ANS addition to the land through natural causes usually by a change in water flow
Adjustable Rate Mortgage - ANS mortgage that shifts the risk or reward of changing interest
rates from the lender to the borrower
Agent - ANS person to authorized to represent another
Appraisal - ANS estimate of value of something, usually a property
Appurtenant Easement - ANS right to use adjoining property that transfers with the land
Asbestos - ANS mineral that was used for insulation, considered harmful if disturbed or
exposed
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Balloon Payment - ANS 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 - ANS two or more parties are bound to act as described
Blockbusting - ANS 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 - ANS failure to perform provisions of a contract without a legal excuse
Cloud on Title - ANS claim or interest revealed by a title search
Commingling - ANS illegal act of real estate broker mixing funds with his own
Common Elements - ANS parts of property that are necessary or convenient to the existence,
maintenance, & safety of a condo and are normally in common use
Condominium - ANS absolute OWNERSHIP of a unit in a multi-unit building
Consideration - ANS benefit, interest, or value that induces a promise, and the glue that
binds a contract
Contribution - ANS appraisal principle that states that the value of any component of a
property is what gives to the value of the whole
Conversion - ANS process of changing a property's status from rental to condo
Conveyance - ANS term to refer to any document that transfers title
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Cooperative - ANS LEASES an apartment and has stock in the corporation
Constructive Eviction - ANS landlord breaches a lease by allowing the property to fall into
severe disrepair
Cost Approach - ANS 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 - ANS new offer made in response to an offer received
Covenant Against Encumbrances - ANS situation in which the grantor warrants that the
property is free from liens and encumbrances
Covenant of Further Assurance - ANS the grantor promises to obtain and deliver any
instrument needed to make the title good
Covenant of Quiet Enjoyment - ANS grantor guarantees that the grantees title is good against
anyone who challenges the grantees ownership
Covenant of Warranty Forever - ANS grantor promises that if at any time in the future the
title fails, he will be liable
Datum - ANS a point, line, or surface from which elevations are measured
Deed Restriction - ANS clauses in a deed that limit the future use of the property
Depreciation - ANS loss of value in any property regardless of the specific cause, in an
appraisal
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
