TEXAS PRINCIPLES OF REAL ESTATE I EXAM READY - VERIFIED
QUESTIONS AND ANSWERS - COMPREHENSIVE LATEST VERSION
(2026/2027)
TX Principles: Texas Principles of Real Estate I
Q1. What is real property?
ANSWER Real property includes land and anything permanently attached to
it, including buildings, improvements, and rights associated with ownership.
Q2. What is personal property?
ANSWER Personal property (personalty) is movable property not
permanently attached to land, such as furniture, vehicles, and equipment.
Q3. What is a fixture?
ANSWER A fixture is personal property that has been permanently attached
to real property and is legally considered part of the real estate.
Q4. What are the three tests used to determine if an item is a fixture?
ANSWER The three tests are: (1) Method of annexation (how firmly
attached), (2) Adaptation to real estate (custom-built or adapted), and (3)
Intention of the parties (did they intend it to be permanent).
Q5. What is the bundle of rights in real estate?
ANSWER The bundle of rights includes: the right to possess, use, enjoy,
exclude others, and dispose of (transfer) real property.
Q6. What does 'real estate' mean?
ANSWER Real estate refers to the physical land and all permanent
attachments to it, both natural and man-made.
Q7. What is the difference between real property and real estate?
ANSWER Real estate refers to the physical land and improvements; real
property includes real estate plus the legal rights associated with ownership.
,Q8. What are surface rights?
ANSWER Surface rights are the rights to use the surface of land, including
the right to build structures and grow crops.
Q9. What are subsurface rights?
ANSWER Subsurface rights (mineral rights) are the rights to resources
beneath the surface of the land, including oil, gas, and minerals.
Q10. What are air rights?
ANSWER Air rights are the rights to use the space above a parcel of land,
subject to government restrictions such as aviation regulations.
Q11. What is a trade fixture?
ANSWER A trade fixture is equipment or personal property installed by a
tenant for business purposes that the tenant has the right to remove at the
end of the lease.
Q12. What is emblements?
ANSWER Emblements are annual crops (fructus industriales) produced by
human labor, considered personal property and belonging to the tenant even
after the lease ends.
Q13. What are the physical characteristics of land?
ANSWER The three physical characteristics are immobility (land cannot be
moved), indestructibility (land cannot be destroyed), and uniqueness (no two
parcels are exactly alike).
Q14. What are the economic characteristics of land?
ANSWER The four economic characteristics are: scarcity, improvements,
permanence of investment, and area preference (situs/location).
Q15. What is situs?
ANSWER Situs refers to location preference — the social and economic
factors that make one location more desirable than another.
Q16. What is fee simple absolute ownership?
ANSWER Fee simple absolute is the highest form of ownership in real estate
— ownership with no limitations or conditions, inheritable by heirs.
Q17. What is a fee simple defeasible estate?
ANSWER A fee simple defeasible estate is ownership that can be terminated
if a certain condition occurs or fails to occur.
Q18. What is a life estate?
, ANSWER A life estate is an ownership interest in real property that lasts for
the lifetime of a specific person (the life tenant).
Q19. Who is the remainderman in a life estate?
ANSWER The remainderman is the person who receives full ownership of
the property when the life tenant dies.
Q20. What is a leasehold estate?
ANSWER A leasehold estate is a temporary right to occupy and use real
property under a lease agreement; it is less than freehold ownership.
Q21. What is an estate for years?
ANSWER An estate for years is a leasehold estate for a fixed period of time
with a definite beginning and ending date.
Q22. What is a periodic tenancy?
ANSWER A periodic tenancy (estate from period to period) is a leasehold
that automatically renews for successive periods until proper notice to
terminate is given.
Q23. What is a tenancy at will?
ANSWER A tenancy at will is a leasehold estate that may be terminated at
any time by either the landlord or tenant with proper notice.
Q24. What is a tenancy at sufferance?
ANSWER A tenancy at sufferance occurs when a tenant remains in
possession of the property after the lease has expired without the landlord's
permission.
Q25. What is joint tenancy?
ANSWER Joint tenancy is co-ownership where all owners have equal,
undivided interests with the right of survivorship — when one owner dies, their
interest automatically passes to the surviving owners.
Q26. What are the four unities required for joint tenancy?
ANSWER The four unities are: Time (acquired at same time), Title (same
deed), Interest (equal shares), and Possession (equal right to use).
Q27. What is tenancy in common?
ANSWER Tenancy in common is co-ownership where each owner holds an
individual, undivided interest that can be unequal and can be sold or inherited
separately.
Q28. What is community property?
, ANSWER Community property is property acquired during a marriage that is
equally owned by both spouses; Texas is a community property state.
Q29. What is separate property in Texas?
ANSWER Separate property is property owned by one spouse before
marriage, or acquired by gift or inheritance during marriage.
Q30. What is a condominium?
ANSWER A condominium is individual ownership of a unit in a multi-unit
building, plus shared ownership of common areas with other unit owners.
Q31. What is an encumbrance?
ANSWER An encumbrance is any claim, lien, charge, or liability attached to
and binding upon real property that may affect its value or use.
Q32. What is a lien?
ANSWER A lien is a legal claim against a property as security for a debt or
obligation.
Q33. What is a voluntary lien?
ANSWER A voluntary lien is created intentionally by the property owner,
such as a mortgage or deed of trust.
Q34. What is an involuntary lien?
ANSWER An involuntary lien is imposed by law without the owner's consent,
such as a tax lien or mechanic's lien.
Q35. What is a general lien?
ANSWER A general lien applies to all property (real and personal) owned by
the debtor, such as a judgment lien.
Q36. What is a specific lien?
ANSWER A specific lien applies only to a particular property, such as a
mortgage lien or property tax lien.
Q37. What is a mechanic's lien?
ANSWER A mechanic's lien is a lien filed by a contractor, subcontractor, or
supplier who has not been paid for work or materials provided to improve real
property.
Q38. What is a tax lien?
ANSWER A tax lien is a lien placed on property by a government entity for
unpaid property taxes or income taxes.
Q39. What is an easement?
QUESTIONS AND ANSWERS - COMPREHENSIVE LATEST VERSION
(2026/2027)
TX Principles: Texas Principles of Real Estate I
Q1. What is real property?
ANSWER Real property includes land and anything permanently attached to
it, including buildings, improvements, and rights associated with ownership.
Q2. What is personal property?
ANSWER Personal property (personalty) is movable property not
permanently attached to land, such as furniture, vehicles, and equipment.
Q3. What is a fixture?
ANSWER A fixture is personal property that has been permanently attached
to real property and is legally considered part of the real estate.
Q4. What are the three tests used to determine if an item is a fixture?
ANSWER The three tests are: (1) Method of annexation (how firmly
attached), (2) Adaptation to real estate (custom-built or adapted), and (3)
Intention of the parties (did they intend it to be permanent).
Q5. What is the bundle of rights in real estate?
ANSWER The bundle of rights includes: the right to possess, use, enjoy,
exclude others, and dispose of (transfer) real property.
Q6. What does 'real estate' mean?
ANSWER Real estate refers to the physical land and all permanent
attachments to it, both natural and man-made.
Q7. What is the difference between real property and real estate?
ANSWER Real estate refers to the physical land and improvements; real
property includes real estate plus the legal rights associated with ownership.
,Q8. What are surface rights?
ANSWER Surface rights are the rights to use the surface of land, including
the right to build structures and grow crops.
Q9. What are subsurface rights?
ANSWER Subsurface rights (mineral rights) are the rights to resources
beneath the surface of the land, including oil, gas, and minerals.
Q10. What are air rights?
ANSWER Air rights are the rights to use the space above a parcel of land,
subject to government restrictions such as aviation regulations.
Q11. What is a trade fixture?
ANSWER A trade fixture is equipment or personal property installed by a
tenant for business purposes that the tenant has the right to remove at the
end of the lease.
Q12. What is emblements?
ANSWER Emblements are annual crops (fructus industriales) produced by
human labor, considered personal property and belonging to the tenant even
after the lease ends.
Q13. What are the physical characteristics of land?
ANSWER The three physical characteristics are immobility (land cannot be
moved), indestructibility (land cannot be destroyed), and uniqueness (no two
parcels are exactly alike).
Q14. What are the economic characteristics of land?
ANSWER The four economic characteristics are: scarcity, improvements,
permanence of investment, and area preference (situs/location).
Q15. What is situs?
ANSWER Situs refers to location preference — the social and economic
factors that make one location more desirable than another.
Q16. What is fee simple absolute ownership?
ANSWER Fee simple absolute is the highest form of ownership in real estate
— ownership with no limitations or conditions, inheritable by heirs.
Q17. What is a fee simple defeasible estate?
ANSWER A fee simple defeasible estate is ownership that can be terminated
if a certain condition occurs or fails to occur.
Q18. What is a life estate?
, ANSWER A life estate is an ownership interest in real property that lasts for
the lifetime of a specific person (the life tenant).
Q19. Who is the remainderman in a life estate?
ANSWER The remainderman is the person who receives full ownership of
the property when the life tenant dies.
Q20. What is a leasehold estate?
ANSWER A leasehold estate is a temporary right to occupy and use real
property under a lease agreement; it is less than freehold ownership.
Q21. What is an estate for years?
ANSWER An estate for years is a leasehold estate for a fixed period of time
with a definite beginning and ending date.
Q22. What is a periodic tenancy?
ANSWER A periodic tenancy (estate from period to period) is a leasehold
that automatically renews for successive periods until proper notice to
terminate is given.
Q23. What is a tenancy at will?
ANSWER A tenancy at will is a leasehold estate that may be terminated at
any time by either the landlord or tenant with proper notice.
Q24. What is a tenancy at sufferance?
ANSWER A tenancy at sufferance occurs when a tenant remains in
possession of the property after the lease has expired without the landlord's
permission.
Q25. What is joint tenancy?
ANSWER Joint tenancy is co-ownership where all owners have equal,
undivided interests with the right of survivorship — when one owner dies, their
interest automatically passes to the surviving owners.
Q26. What are the four unities required for joint tenancy?
ANSWER The four unities are: Time (acquired at same time), Title (same
deed), Interest (equal shares), and Possession (equal right to use).
Q27. What is tenancy in common?
ANSWER Tenancy in common is co-ownership where each owner holds an
individual, undivided interest that can be unequal and can be sold or inherited
separately.
Q28. What is community property?
, ANSWER Community property is property acquired during a marriage that is
equally owned by both spouses; Texas is a community property state.
Q29. What is separate property in Texas?
ANSWER Separate property is property owned by one spouse before
marriage, or acquired by gift or inheritance during marriage.
Q30. What is a condominium?
ANSWER A condominium is individual ownership of a unit in a multi-unit
building, plus shared ownership of common areas with other unit owners.
Q31. What is an encumbrance?
ANSWER An encumbrance is any claim, lien, charge, or liability attached to
and binding upon real property that may affect its value or use.
Q32. What is a lien?
ANSWER A lien is a legal claim against a property as security for a debt or
obligation.
Q33. What is a voluntary lien?
ANSWER A voluntary lien is created intentionally by the property owner,
such as a mortgage or deed of trust.
Q34. What is an involuntary lien?
ANSWER An involuntary lien is imposed by law without the owner's consent,
such as a tax lien or mechanic's lien.
Q35. What is a general lien?
ANSWER A general lien applies to all property (real and personal) owned by
the debtor, such as a judgment lien.
Q36. What is a specific lien?
ANSWER A specific lien applies only to a particular property, such as a
mortgage lien or property tax lien.
Q37. What is a mechanic's lien?
ANSWER A mechanic's lien is a lien filed by a contractor, subcontractor, or
supplier who has not been paid for work or materials provided to improve real
property.
Q38. What is a tax lien?
ANSWER A tax lien is a lien placed on property by a government entity for
unpaid property taxes or income taxes.
Q39. What is an easement?
