©THEBRIGHTSTARS 2024
Texas Real Estate Exam (National) Questions
With Revised Answers
Real property - answer✔✔the tangible real estate and intangible rights associated with the
ownership of real estate
-transfers by deed or will
personal property - answer✔✔a right or interest in things of a temporary or movable nature;
anything not classed as real property (chattel, personalty)
-transfers by a bill of state
fixture - answer✔✔personal property that has been attached in such a way as to make it real
property
-"installed" often indicates permanent attachment
-annexation: the process of attaching
-severed: real property becoming personal property
trade fixture - answer✔✔objects affixed to leased property that are owned by and necessary for
the tenant's trade or business
-accession: acquiring property if trade fixtures are not removed prior to the termination of the
lease
legal land description methods - answer✔✔metes and bounds, the rectangular survey system, lot-
block-tract system, monuments
physical characteristics of land (DUI) - answer✔✔-durability
-uniqueness
-immobility
economic characteristics of land (SAFE) - answer✔✔-situs
-alteration
, ©THEBRIGHTSTARS 2024
-fixity
-economic scarcity
encumbrance - answer✔✔any claim or liability attached to real property that may lessen the
owner's bundle of rights or the value of the property
-lien, claim, liability, judgment, encroachment, lease, easement, deed restriction, etc.
-release is the best way to get rid of it
lien - answer✔✔a charge against property as security for a debt
voluntary lien - answer✔✔when a person takes actions that places a lien on his or her own
property
-example: taking out a mortgage or home improvement loan
involuntary lien - answer✔✔property owner doesn't take any action to initiate them
-created by law
-can be statutory or equitable
-statutory: federal tax liens, ad valorem tax liens, judgement liens
-equitable: arise out of common law and include seller (vendor) or buyer (vendee) liens
encroachment - answer✔✔a physical intrusion on someone else's property without direct
permission
deed restrictions (CC&R's) - answer✔✔sets limits on how the property may be used by the
owner (covenants, conditions, & restrictions)
-created by the grantor
easement - answer✔✔a right to use part or all of another individual's land or property for a
specific purpose and length of time
estate - answer✔✔an interest in real property
freehold estate - answer✔✔the property owner has actual ownership and possession of the land,
which lasts for an unspecified period of time
statutory estate - answer✔✔created by law
-community property & homestead in Texas
forms of ownership - answer✔✔-individual ownership
, ©THEBRIGHTSTARS 2024
-co-ownership
-held in trust
types of co-ownership - answer✔✔-tenancy in common
-joint tenancy
-community property
-partnerships
held in trust - answer✔✔a property is held by one party for the benefit of another
police power - answer✔✔power given to a municipality to regulate and control the character and
use of property for the health, safety and general welfare ofthe public
-most common example: zoning
eminent domain - answer✔✔the power of the government to take private property from an
owner at all times
-condemnation: the process of taking private property
property taxes - answer✔✔"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment - answer✔✔taxes levied on property to pay for public improvements
escheat - answer✔✔if an individual dies without a will or surviving spouse, their property will
pass to the state
water rights - answer✔✔-riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value - answer✔✔the price a willing seller will sell for, and the price a willing buyer will
pay, when neither is acting under exceptional pressure
characteristics of value (DUST) - answer✔✔-demand
-utility
-scarcity
-transferability
Texas Real Estate Exam (National) Questions
With Revised Answers
Real property - answer✔✔the tangible real estate and intangible rights associated with the
ownership of real estate
-transfers by deed or will
personal property - answer✔✔a right or interest in things of a temporary or movable nature;
anything not classed as real property (chattel, personalty)
-transfers by a bill of state
fixture - answer✔✔personal property that has been attached in such a way as to make it real
property
-"installed" often indicates permanent attachment
-annexation: the process of attaching
-severed: real property becoming personal property
trade fixture - answer✔✔objects affixed to leased property that are owned by and necessary for
the tenant's trade or business
-accession: acquiring property if trade fixtures are not removed prior to the termination of the
lease
legal land description methods - answer✔✔metes and bounds, the rectangular survey system, lot-
block-tract system, monuments
physical characteristics of land (DUI) - answer✔✔-durability
-uniqueness
-immobility
economic characteristics of land (SAFE) - answer✔✔-situs
-alteration
, ©THEBRIGHTSTARS 2024
-fixity
-economic scarcity
encumbrance - answer✔✔any claim or liability attached to real property that may lessen the
owner's bundle of rights or the value of the property
-lien, claim, liability, judgment, encroachment, lease, easement, deed restriction, etc.
-release is the best way to get rid of it
lien - answer✔✔a charge against property as security for a debt
voluntary lien - answer✔✔when a person takes actions that places a lien on his or her own
property
-example: taking out a mortgage or home improvement loan
involuntary lien - answer✔✔property owner doesn't take any action to initiate them
-created by law
-can be statutory or equitable
-statutory: federal tax liens, ad valorem tax liens, judgement liens
-equitable: arise out of common law and include seller (vendor) or buyer (vendee) liens
encroachment - answer✔✔a physical intrusion on someone else's property without direct
permission
deed restrictions (CC&R's) - answer✔✔sets limits on how the property may be used by the
owner (covenants, conditions, & restrictions)
-created by the grantor
easement - answer✔✔a right to use part or all of another individual's land or property for a
specific purpose and length of time
estate - answer✔✔an interest in real property
freehold estate - answer✔✔the property owner has actual ownership and possession of the land,
which lasts for an unspecified period of time
statutory estate - answer✔✔created by law
-community property & homestead in Texas
forms of ownership - answer✔✔-individual ownership
, ©THEBRIGHTSTARS 2024
-co-ownership
-held in trust
types of co-ownership - answer✔✔-tenancy in common
-joint tenancy
-community property
-partnerships
held in trust - answer✔✔a property is held by one party for the benefit of another
police power - answer✔✔power given to a municipality to regulate and control the character and
use of property for the health, safety and general welfare ofthe public
-most common example: zoning
eminent domain - answer✔✔the power of the government to take private property from an
owner at all times
-condemnation: the process of taking private property
property taxes - answer✔✔"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment - answer✔✔taxes levied on property to pay for public improvements
escheat - answer✔✔if an individual dies without a will or surviving spouse, their property will
pass to the state
water rights - answer✔✔-riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value - answer✔✔the price a willing seller will sell for, and the price a willing buyer will
pay, when neither is acting under exceptional pressure
characteristics of value (DUST) - answer✔✔-demand
-utility
-scarcity
-transferability
