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