2026 Texas Real Estate Exam with all Correct & 100%
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A farmer temporarily installs produce coolers in a leased farm stand in order to prevent
spoilage. The coolers would be considered which of the following?
a) Trade fixtures that are real property.
b) Trade fixtures that are personal property.
c) Temporary real property.
d) Emblements. ✔Correct Answer-b) Trade fixtures that are personal property.
Property can be converted from real to personal property and from personal property to real
property by means of which processes respectively?
a) Assemblage and plottage.
b) Application and dissolution.
c) Severance and affixing.
d) Planting and harvesting. ✔Correct Answer-c) Severance and affixing.
The highest form of ownership interest one can acquire in real estate is the:
a) legal life estate.
b) Conventional life estate.
c) Defeasible fee simple estate.
d) Absolute fee simple estate. ✔Correct Answer-d) Absolute fee simple estate.
The distinguishing feature of a defeasible fee simple estate is that:
a) It could be passed onto heirs.
b) It has no restrictions on use.
c) The estate may revert to a grantor or heirs if the prescribed use changes.
d) It is of unlimited duration. ✔Correct Answer-c) The estate may revert to a grantor or heirs if
the prescribed use changes.
Maria acquires a property from her uncle Alfonso. When Maria dies the estate will pass to
Alfonso's other niece Serena. The type of
estate that Maria has in the property is:
a) conventional life estate.
b) Legal life estate.
c) Fee simple defeasible estate.
d) Tenancy by the entirety's. ✔Correct Answer-a) conventional life estate.
,One difference between a cooperative estate and a condominium estate is that:
a) a condominium owner owns a unit of air space whereas the co-op owner owns a proprietary
lease.
b) A condominium sale adversely affects other unit owners.
c) The co-op owner owns stock and a freehold real estate interest whereas the condominium
owner simply a proprietary lease.
d) The condominium owner owns the common elements and the air space whereas the co-op
owner only owns the apartment. ✔Correct Answer-a) a condominium owner owns a unit of
air space whereas the co-op owner owns a proprietary lease.
Who are the essential parties involved in an estate and trust?
a) Owner trustor, and lawyer.
b) Owner, trustor, and trustee.
c) Trustee, title company, and beneficiary.
d) Trustor, trustee, and beneficiary. ✔Correct Answer-d) Trustor, trustee, and beneficiary.
A condominium owner enjoys a:
a) share in an association that owns one's apartment.
b) Tenancy in common interest in air space and common areas of the property.
c) Fee simple ownership of the airspace in a unit and an undivided share of the entire property's
common areas.
d) The simple ownership of a pro rata share of the entire property. ✔Correct Answer-c) Fee
simple ownership of the airspace in a unit and an undivided share of the entire property's
common areas.
With various types of junior liens, the order of payment priority is generally established
according to:
a) the date of recordation.
b) What form of tax is in question.
c) The order of disbursement.
d) Whether the lien was subordinated. ✔Correct Answer-a) the date of recordation.
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a mortgage lien is created.
c) A state in which the holder of a mortgage lien receives title to the mortgage and property
until the debt is satisfied.
, d) A state in which liens must be recorded to be enforceable. ✔Correct Answer-b) A state in
which a mortgage retains title to the property when a mortgage lien is created.
A property owner has an easement appurtenant on her property. One day the property is sold
to another party who is opposed to the easement. Following the closing, this particular form of
easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property. ✔Correct Answer-b) Transfers with the property.
What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the property.
d) Assembling all relevant documents in a single place. ✔Correct Answer-c) Giving
constructive notice of one's rights and interests in the property.
What is chain of title?
a) The list of all parties who have ever owned real estate.
b) The bundle of rights linked to the recorded title to a parcel.
c) A chronology of successive owners of record of a parcel of real estate.
d) Involuntary conveyance of title by statutory roles of descent. ✔Correct Answer-c) A
chronology of successive owners of record of a parcel of real estate.
Which of the following provides the strongest evidence of marketable title?
a) A general warranty deed.
b) A title certificate.
c) Title insurance.
d) An attorney's opinion. ✔Correct Answer-c) Title insurance.
A store owner enters into a lease that charges rent per square foot, a common area fee, and a
portion of the store owner's gross income from the property. This kind of lease is a:
a) triple charge, or triple net lease.
b) Proprietor's lease.
c) Percentage lease.
d) Retailer's gross lease. ✔Correct Answer-c) Percentage lease.
Verified Answers |Latest Update |Guaranteed to Pass
A farmer temporarily installs produce coolers in a leased farm stand in order to prevent
spoilage. The coolers would be considered which of the following?
a) Trade fixtures that are real property.
b) Trade fixtures that are personal property.
c) Temporary real property.
d) Emblements. ✔Correct Answer-b) Trade fixtures that are personal property.
Property can be converted from real to personal property and from personal property to real
property by means of which processes respectively?
a) Assemblage and plottage.
b) Application and dissolution.
c) Severance and affixing.
d) Planting and harvesting. ✔Correct Answer-c) Severance and affixing.
The highest form of ownership interest one can acquire in real estate is the:
a) legal life estate.
b) Conventional life estate.
c) Defeasible fee simple estate.
d) Absolute fee simple estate. ✔Correct Answer-d) Absolute fee simple estate.
The distinguishing feature of a defeasible fee simple estate is that:
a) It could be passed onto heirs.
b) It has no restrictions on use.
c) The estate may revert to a grantor or heirs if the prescribed use changes.
d) It is of unlimited duration. ✔Correct Answer-c) The estate may revert to a grantor or heirs if
the prescribed use changes.
Maria acquires a property from her uncle Alfonso. When Maria dies the estate will pass to
Alfonso's other niece Serena. The type of
estate that Maria has in the property is:
a) conventional life estate.
b) Legal life estate.
c) Fee simple defeasible estate.
d) Tenancy by the entirety's. ✔Correct Answer-a) conventional life estate.
,One difference between a cooperative estate and a condominium estate is that:
a) a condominium owner owns a unit of air space whereas the co-op owner owns a proprietary
lease.
b) A condominium sale adversely affects other unit owners.
c) The co-op owner owns stock and a freehold real estate interest whereas the condominium
owner simply a proprietary lease.
d) The condominium owner owns the common elements and the air space whereas the co-op
owner only owns the apartment. ✔Correct Answer-a) a condominium owner owns a unit of
air space whereas the co-op owner owns a proprietary lease.
Who are the essential parties involved in an estate and trust?
a) Owner trustor, and lawyer.
b) Owner, trustor, and trustee.
c) Trustee, title company, and beneficiary.
d) Trustor, trustee, and beneficiary. ✔Correct Answer-d) Trustor, trustee, and beneficiary.
A condominium owner enjoys a:
a) share in an association that owns one's apartment.
b) Tenancy in common interest in air space and common areas of the property.
c) Fee simple ownership of the airspace in a unit and an undivided share of the entire property's
common areas.
d) The simple ownership of a pro rata share of the entire property. ✔Correct Answer-c) Fee
simple ownership of the airspace in a unit and an undivided share of the entire property's
common areas.
With various types of junior liens, the order of payment priority is generally established
according to:
a) the date of recordation.
b) What form of tax is in question.
c) The order of disbursement.
d) Whether the lien was subordinated. ✔Correct Answer-a) the date of recordation.
What is a lien theory state in contrast to a title theory state?
a) A state in which liens are given priority over other encumbrances
b) A state in which a mortgage retains title to the property when a mortgage lien is created.
c) A state in which the holder of a mortgage lien receives title to the mortgage and property
until the debt is satisfied.
, d) A state in which liens must be recorded to be enforceable. ✔Correct Answer-b) A state in
which a mortgage retains title to the property when a mortgage lien is created.
A property owner has an easement appurtenant on her property. One day the property is sold
to another party who is opposed to the easement. Following the closing, this particular form of
easement:
a) terminates.
b) Transfers with the property.
c) Transfers with the owner to a new property.
d) Becomes a license on the property. ✔Correct Answer-b) Transfers with the property.
What fundamental legal purpose is fulfilled by title records?
a) Keeping the county apprised of tax payments.
b) Preventing identity theft.
c) Giving constructive notice of one's rights and interests in the property.
d) Assembling all relevant documents in a single place. ✔Correct Answer-c) Giving
constructive notice of one's rights and interests in the property.
What is chain of title?
a) The list of all parties who have ever owned real estate.
b) The bundle of rights linked to the recorded title to a parcel.
c) A chronology of successive owners of record of a parcel of real estate.
d) Involuntary conveyance of title by statutory roles of descent. ✔Correct Answer-c) A
chronology of successive owners of record of a parcel of real estate.
Which of the following provides the strongest evidence of marketable title?
a) A general warranty deed.
b) A title certificate.
c) Title insurance.
d) An attorney's opinion. ✔Correct Answer-c) Title insurance.
A store owner enters into a lease that charges rent per square foot, a common area fee, and a
portion of the store owner's gross income from the property. This kind of lease is a:
a) triple charge, or triple net lease.
b) Proprietor's lease.
c) Percentage lease.
d) Retailer's gross lease. ✔Correct Answer-c) Percentage lease.
