Texas Pre-License-Principles of Real
Estate 1
Apartment Locator - Answer-a real estate license holder who locates dwelling units for prospective
tenants
Tenant - Answer-one who possesses a property under lease without ownership
Broker - Answer-someone who assists in buying and selling to receive a commission
Client - Answer-the person that an agent is representing, made official through representation
document
Sales Agent Apprentice Education (SAE) - Answer-an educational requirement for courses in the first two
years of being licensed as a real estate agent
Consumer - Answer-A person or company that buys or leases any product or service
Land - Answer-the surface of the earth, extending down to the center of the Earth and up into space
,Real Estate - Answer-includes the land and any natural or manmade improvements attached to it
Real Property - Answer-includes land and any natural or manmade improvements attached to it, plus
the bundle of legal rights of ownership
Personal Property - Answer-items that can easily be removed from the land
Immobility - Answer-characteristic of land stating that land has a particular geographical location that
will remain constant, barring erosion or slow geological changes
Real Estate Broker - Answer-a person or corporation who markets to find buyers and sellers to put
together in exchange for a commission
broker's price opinion (BPO) - Answer-a broker's price opinion is the process used by a hired sales agent
to determine the potential selling price or estimated value of a real estate property
Closing - Answer-the completion of a real estate transaction in which the buyer receives ownership and
the seller receives the contract amount
Comparative Market Analysis (CMA) - Answer-a report comparing the prices of sold homes that are
similar to the subject property (called comparables); created by a license holder to help the seller or
buyer determine the market price
Mispresentation - Answer-a false statement (spoken or written) that is made unintentionally
Party - Answer-a person involved in a contract for sale, lease or agency
Commingle - Answer-an illegal act of a license holder who mixes their own money with a clients or
customers money
,Promulgated Forms - Answer-forms prepared and authorized by the Texas Real Estate Commission that
MUST be used by real estate license holders
Approved Forms - Answer-forms prepared and authorized by the Texas Real Estate Commission that
CAN be used by real estate license holders
Cloud on title - Answer-an encumbrance that keeps the title to the property from transferring easily
Puffing - Answer-the exaggeration of opinions about real estate
Nolo contendere - Answer-a plea in a criminal court in which the defendant accepts the punishment
with out admitting guilt
Allodial System - Answer-ownership of land in which the land is owned free and clear; it is the
opposition of the feudal system
Feudal System - Answer-a form of ownership from England's past in which royalty owned the land
Improvement - Answer-any permanent man-made addition to land
Subsurface rights - Answer-ownership of the minerals, gas or oil beneath the surface of a piece of real
estate
surface rights - Answer-The ownership of the land in a parcel or real estate but limited only to the plane
air rights - Answer-the right to use the airspace above the surface of land
, water rights - Answer-the right to enjoy the water that borders a property
littoral rights - Answer-rights that govern lakefront or oceanfront property and usually allow the
property owner to use the water bordering their property
riparian rights - Answer-rights that govern the use of flowing water, such as rivers and streams that pass
through or border a property
personal property - Answer-any item that is not real estate, also know as chattel or personalty
real estate - Answer-a part of the surface of land to the center of the earth and upward, plus all
improvements made by man or nature
real property - Answer-land from the surface to the center of earth and upward into space including
everything attached by man or nature as well as the bundle of legal rights of the ownership
Fixture - Answer-an object that was once personal property, but which has now been firmly attached to
the land in such a way that it becomes part of the estate
trade fixture - Answer-personal property attached to real property that is owned by and needed for a
tenant's business
Adaptation - Answer-the use of modification of a particular item for a specific use in a property
fructus naturales - Answer-trees, bushes, grass, and uncultivated plants, usually considered to be real
property because of their permanence
Estate 1
Apartment Locator - Answer-a real estate license holder who locates dwelling units for prospective
tenants
Tenant - Answer-one who possesses a property under lease without ownership
Broker - Answer-someone who assists in buying and selling to receive a commission
Client - Answer-the person that an agent is representing, made official through representation
document
Sales Agent Apprentice Education (SAE) - Answer-an educational requirement for courses in the first two
years of being licensed as a real estate agent
Consumer - Answer-A person or company that buys or leases any product or service
Land - Answer-the surface of the earth, extending down to the center of the Earth and up into space
,Real Estate - Answer-includes the land and any natural or manmade improvements attached to it
Real Property - Answer-includes land and any natural or manmade improvements attached to it, plus
the bundle of legal rights of ownership
Personal Property - Answer-items that can easily be removed from the land
Immobility - Answer-characteristic of land stating that land has a particular geographical location that
will remain constant, barring erosion or slow geological changes
Real Estate Broker - Answer-a person or corporation who markets to find buyers and sellers to put
together in exchange for a commission
broker's price opinion (BPO) - Answer-a broker's price opinion is the process used by a hired sales agent
to determine the potential selling price or estimated value of a real estate property
Closing - Answer-the completion of a real estate transaction in which the buyer receives ownership and
the seller receives the contract amount
Comparative Market Analysis (CMA) - Answer-a report comparing the prices of sold homes that are
similar to the subject property (called comparables); created by a license holder to help the seller or
buyer determine the market price
Mispresentation - Answer-a false statement (spoken or written) that is made unintentionally
Party - Answer-a person involved in a contract for sale, lease or agency
Commingle - Answer-an illegal act of a license holder who mixes their own money with a clients or
customers money
,Promulgated Forms - Answer-forms prepared and authorized by the Texas Real Estate Commission that
MUST be used by real estate license holders
Approved Forms - Answer-forms prepared and authorized by the Texas Real Estate Commission that
CAN be used by real estate license holders
Cloud on title - Answer-an encumbrance that keeps the title to the property from transferring easily
Puffing - Answer-the exaggeration of opinions about real estate
Nolo contendere - Answer-a plea in a criminal court in which the defendant accepts the punishment
with out admitting guilt
Allodial System - Answer-ownership of land in which the land is owned free and clear; it is the
opposition of the feudal system
Feudal System - Answer-a form of ownership from England's past in which royalty owned the land
Improvement - Answer-any permanent man-made addition to land
Subsurface rights - Answer-ownership of the minerals, gas or oil beneath the surface of a piece of real
estate
surface rights - Answer-The ownership of the land in a parcel or real estate but limited only to the plane
air rights - Answer-the right to use the airspace above the surface of land
, water rights - Answer-the right to enjoy the water that borders a property
littoral rights - Answer-rights that govern lakefront or oceanfront property and usually allow the
property owner to use the water bordering their property
riparian rights - Answer-rights that govern the use of flowing water, such as rivers and streams that pass
through or border a property
personal property - Answer-any item that is not real estate, also know as chattel or personalty
real estate - Answer-a part of the surface of land to the center of the earth and upward, plus all
improvements made by man or nature
real property - Answer-land from the surface to the center of earth and upward into space including
everything attached by man or nature as well as the bundle of legal rights of the ownership
Fixture - Answer-an object that was once personal property, but which has now been firmly attached to
the land in such a way that it becomes part of the estate
trade fixture - Answer-personal property attached to real property that is owned by and needed for a
tenant's business
Adaptation - Answer-the use of modification of a particular item for a specific use in a property
fructus naturales - Answer-trees, bushes, grass, and uncultivated plants, usually considered to be real
property because of their permanence
