TEXAS REAL ESTATE EXAM
,1. The Smiths found a home they love and asked their agent to write an offer. Their
agent informs them that the sellers are taking a fixture from the dining room and
moving it to their new home. What are the sellers removing from the home?
a. The chandelier
b. A large, heavy potted plant
c. The teak dining room set
d. The swinging door between the kitchen and the dining room
Correct Answer: A
Personal property that is attached, or fixed, to real estate is typically considered real
property and is referred to as "fixtures". In this situation, the seller is choosing to
detach the fixture and retain it as personal property. The plant is in a pot which is a
personal item that is not attached to the property. Furnishings, in general, are
considered personal property. The swinging door is attached to the home and was
installed when the home was built. It is considered real property.
2. A single-family home being considered by the Powers Family has two parts which
are joined by a breezeway that has no HVAC. The bedroom wing has five bedrooms
and two bathrooms and is 40' wide and 40' long. The breezeway is 6' wide and 5' long.
The living area wing has a living room, dining room, kitchen and laundry room. It is 30'
wide and 40' long. What is the gross living area (GLA) of the home?
a. 2,830 square feet
b. 2,800 square feet
c. 2,000 square feet
d. 2,770 square feet
Correct Answer: B
,For an area to be included in the GLA it must meet three criteria: (1) it must be heated
or have air; (2) it must be finished; and (3) the living area must be directly accessible
from the other living areas. In this scenario, the breezeway does not have heat or air, so
is not considered part of the GLA and is not counted.
Step 1: Multiply 40'x40' to arrive at 1600 s.f.
Step 2: Multiply 30'x40' to arrive at 1200 s.f.
Step 3: 1600 s.f. + 1200 s.f. = 2800 s.f. GLA
3. Which of the following forms of ownership is best described as "individual
ownership"?
a. joint tenancy
b. ownership in severalty
c. tenancy in common
d. tenancy by the entirety
Correct Answer: B
It is important to understand the different forms of real property ownership. Ownership
in severalty is a form of ownership where there is one owner. The ownership is
"several", meaning separate, distinct or sole. Under ownership in severalty, the owner
has sole control over the use and possession of the property. Joint tenancy, on the
other hand, means that there is more than one owner and all owners have equal share
in the whole property. It is distinguished by the right of survivorship. If one owner dies,
his interest passes to the surviving owner(s). Tenancy in common is incorrect because
a tenancy in common by definition requires two or more owners. In a tenancy in
common, the interest of an owner passes to his descendants or heirs upon his passing
and not to the other owners. Tenancy by the entirety is basically a joint tenancy for
married couples. It is a form of ownership where a married couple own equal shares in
the real estate. It has a right of survivorship.
, 4 Harry Blackwell owned ten acres on Leaf Creek Dr. The local animal shelter was in
need of land to build a new facility for their growing menagerie. Mr. Blackwell, an
animal lover, granted his property to the shelter with the condition that it revert back to
him or his estate if the shelter ever opted out of its "no kill" policy. What type of estate
did Mr. Blackwell create?
a. fee simple estate
b. life estate
c. fee simple defeasible estate
d. fee simple subject to a condition precedent
Correct Answer: C
A fee simple defeasible is a fee simple with a condition placed on it. The holder of the
fee simple defeasible possess the property subject to the condition. If the condition is
violated or met, the property either automatically goes back to the granter (fee simple
determinable) or a designated third party, or the grantor has the option to sue to take
the property back (fee simple with a condition subsequent). A life estate is an incorrect
answer because it is one in which the grantee has rights of ownership only for the
duration of his life or the life of another. This is a limited estate based on the duration
of a person's life. A fee simple subject to a condition precedent is an incorrect answer
because it establishes an estate for a party upon the future occurrence of some
condition.
Texas Property Value and Appraisal
5 The economic concept of scarcity is best explained by which example?
a. A retail developer asks his agent to find a two-acre tract downtown and the agent
reports back that there are no listings that meet his request.
b. A storeowner decides to convert the second floor of his building into an apartment
because there is a rental apartment shortage in the downtown area.
,1. The Smiths found a home they love and asked their agent to write an offer. Their
agent informs them that the sellers are taking a fixture from the dining room and
moving it to their new home. What are the sellers removing from the home?
a. The chandelier
b. A large, heavy potted plant
c. The teak dining room set
d. The swinging door between the kitchen and the dining room
Correct Answer: A
Personal property that is attached, or fixed, to real estate is typically considered real
property and is referred to as "fixtures". In this situation, the seller is choosing to
detach the fixture and retain it as personal property. The plant is in a pot which is a
personal item that is not attached to the property. Furnishings, in general, are
considered personal property. The swinging door is attached to the home and was
installed when the home was built. It is considered real property.
2. A single-family home being considered by the Powers Family has two parts which
are joined by a breezeway that has no HVAC. The bedroom wing has five bedrooms
and two bathrooms and is 40' wide and 40' long. The breezeway is 6' wide and 5' long.
The living area wing has a living room, dining room, kitchen and laundry room. It is 30'
wide and 40' long. What is the gross living area (GLA) of the home?
a. 2,830 square feet
b. 2,800 square feet
c. 2,000 square feet
d. 2,770 square feet
Correct Answer: B
,For an area to be included in the GLA it must meet three criteria: (1) it must be heated
or have air; (2) it must be finished; and (3) the living area must be directly accessible
from the other living areas. In this scenario, the breezeway does not have heat or air, so
is not considered part of the GLA and is not counted.
Step 1: Multiply 40'x40' to arrive at 1600 s.f.
Step 2: Multiply 30'x40' to arrive at 1200 s.f.
Step 3: 1600 s.f. + 1200 s.f. = 2800 s.f. GLA
3. Which of the following forms of ownership is best described as "individual
ownership"?
a. joint tenancy
b. ownership in severalty
c. tenancy in common
d. tenancy by the entirety
Correct Answer: B
It is important to understand the different forms of real property ownership. Ownership
in severalty is a form of ownership where there is one owner. The ownership is
"several", meaning separate, distinct or sole. Under ownership in severalty, the owner
has sole control over the use and possession of the property. Joint tenancy, on the
other hand, means that there is more than one owner and all owners have equal share
in the whole property. It is distinguished by the right of survivorship. If one owner dies,
his interest passes to the surviving owner(s). Tenancy in common is incorrect because
a tenancy in common by definition requires two or more owners. In a tenancy in
common, the interest of an owner passes to his descendants or heirs upon his passing
and not to the other owners. Tenancy by the entirety is basically a joint tenancy for
married couples. It is a form of ownership where a married couple own equal shares in
the real estate. It has a right of survivorship.
, 4 Harry Blackwell owned ten acres on Leaf Creek Dr. The local animal shelter was in
need of land to build a new facility for their growing menagerie. Mr. Blackwell, an
animal lover, granted his property to the shelter with the condition that it revert back to
him or his estate if the shelter ever opted out of its "no kill" policy. What type of estate
did Mr. Blackwell create?
a. fee simple estate
b. life estate
c. fee simple defeasible estate
d. fee simple subject to a condition precedent
Correct Answer: C
A fee simple defeasible is a fee simple with a condition placed on it. The holder of the
fee simple defeasible possess the property subject to the condition. If the condition is
violated or met, the property either automatically goes back to the granter (fee simple
determinable) or a designated third party, or the grantor has the option to sue to take
the property back (fee simple with a condition subsequent). A life estate is an incorrect
answer because it is one in which the grantee has rights of ownership only for the
duration of his life or the life of another. This is a limited estate based on the duration
of a person's life. A fee simple subject to a condition precedent is an incorrect answer
because it establishes an estate for a party upon the future occurrence of some
condition.
Texas Property Value and Appraisal
5 The economic concept of scarcity is best explained by which example?
a. A retail developer asks his agent to find a two-acre tract downtown and the agent
reports back that there are no listings that meet his request.
b. A storeowner decides to convert the second floor of his building into an apartment
because there is a rental apartment shortage in the downtown area.
