TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL
PAPER 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ Real Estate Broker. Answer: A person or an organization acting as the
agent for others in negotiating the purchase and sale of real property or
other commodities for a fee.
◉ Real Estate Salesperson. Answer: A person performing any of the acts
included in the definition of real estate broker but while associated with
and supervised by a broker.
◉ Residential Property. Answer: A type of property that includes one to
four dwelling units.
◉ Commercial Property. Answer: Property that produces rental income
or that is used in business. Properties with five or more dwelling units
are considered commercial property.
◉ Industrial Property. Answer: Property that is used by companies or
persons for manufacturing, warehousing, or the assemblage of
components.
,◉ Special Purpose Property. Answer: A category of real property created
as a result of combining the land and its improvements for a single
highest and best use.
◉ Mixed-Use Property. Answer: Any urban, suburban or village
development, or even a single building, that blends a combination of
residential, commercial, cultural, institutional, or industrial uses, where
those functions are physically and functionally integrated, and that
provides pedestrian connections.
◉ Improvements. Answer: Changes or additions made to a property,
such as walls and roads. These typically increase the value of a property,
except in some cases of over improvement.
◉ Non-Homogeneity. Answer: A physical characteristic of land
describing that land as a unique commodity.
◉ Value. Answer: The present worth of future benefits.
◉ Price. Answer: The amount a purchaser agrees to pay and a seller
agrees to accept under the circumstances surrounding a transaction.
◉ Cost. Answer: The total dollar expenditure for labor, materials, and
other items related to construction.
, ◉ Supply. Answer: The amount of goods offered for sale within a given
market at a given price during a given time period.
◉ Demand. Answer: The amount of goods consumers are willing and
able to buy at any given price during any given time period.
◉ Demography. Answer: The study of the social and economic statistics
of a community.
◉ Agent. Answer: A person authorized to act on behalf of another.
◉ Principal. Answer: The employer of an agent.
◉ Customer. Answer: The party the agent brings to the principal as
seller or buyer of the property.
◉ General Agent. Answer: An agent with full authority over one
property of the principal, such as a property manager.
◉ Special Agent. Answer: An agent with limited authority to act on
behalf of the principal, such as created by a listing.
PAPER 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ Real Estate Broker. Answer: A person or an organization acting as the
agent for others in negotiating the purchase and sale of real property or
other commodities for a fee.
◉ Real Estate Salesperson. Answer: A person performing any of the acts
included in the definition of real estate broker but while associated with
and supervised by a broker.
◉ Residential Property. Answer: A type of property that includes one to
four dwelling units.
◉ Commercial Property. Answer: Property that produces rental income
or that is used in business. Properties with five or more dwelling units
are considered commercial property.
◉ Industrial Property. Answer: Property that is used by companies or
persons for manufacturing, warehousing, or the assemblage of
components.
,◉ Special Purpose Property. Answer: A category of real property created
as a result of combining the land and its improvements for a single
highest and best use.
◉ Mixed-Use Property. Answer: Any urban, suburban or village
development, or even a single building, that blends a combination of
residential, commercial, cultural, institutional, or industrial uses, where
those functions are physically and functionally integrated, and that
provides pedestrian connections.
◉ Improvements. Answer: Changes or additions made to a property,
such as walls and roads. These typically increase the value of a property,
except in some cases of over improvement.
◉ Non-Homogeneity. Answer: A physical characteristic of land
describing that land as a unique commodity.
◉ Value. Answer: The present worth of future benefits.
◉ Price. Answer: The amount a purchaser agrees to pay and a seller
agrees to accept under the circumstances surrounding a transaction.
◉ Cost. Answer: The total dollar expenditure for labor, materials, and
other items related to construction.
, ◉ Supply. Answer: The amount of goods offered for sale within a given
market at a given price during a given time period.
◉ Demand. Answer: The amount of goods consumers are willing and
able to buy at any given price during any given time period.
◉ Demography. Answer: The study of the social and economic statistics
of a community.
◉ Agent. Answer: A person authorized to act on behalf of another.
◉ Principal. Answer: The employer of an agent.
◉ Customer. Answer: The party the agent brings to the principal as
seller or buyer of the property.
◉ General Agent. Answer: An agent with full authority over one
property of the principal, such as a property manager.
◉ Special Agent. Answer: An agent with limited authority to act on
behalf of the principal, such as created by a listing.
