REAL ESTATE-PRINCIPLES OF REAL ESTATE
I Exam Questions and Correct Answers
Latest Versions 2025 GRADED A+
Appraisal - ANSWER Providing a professional opinion of the value of real propery
RMLO's in TX are licensed through the - ANSWER Texas Dept of Savings and
Mortgage Lending
Land - ANSWER Surface of the earth extending to the center and upward above the
surface to infinity, includes natural things-trees, crops and water
Real Estate - ANSWER all that is encompassed in land, with the addition of all
man-made additions to the land, such as roads, houses and commercial buildings
Real Property - ANSWER includes the rights that a person has in the land, goes
beyond physical real estate
Severable - ANSWER common for different individuals to own different rights of the
same piece of land; surface owners do not own the subsurface rights to their property.
Surface rights - ANSWER owner has right to improve or develop the surface and use
resources extracted from or near the surface, including stone, gravel, water and
limestone
subsurface rights - ANSWER include the rights to oil, gas and other minerals,
commonly conveyed through a lease, mineral deed or by reservation
Air rights - ANSWER extend above the surface without limitation, can be leased, sold
or mortgaged. prohibit any activity that blocks the view of a building, cell phone
transmitter tower or billboard
Solar access - ANSWER property owners have a right to reasonable amount of
sunlight for heating. roman law dating back 2000 years
Surface rights - ANSWER transferred to new owners in total
Royalty rights - ANSWER right to collect a royalty for oil and gas production
,Executive Rights - ANSWER right to execute a contract or lease for the exploration of
oil and gas
Bundle of Rights - ANSWER Rights that are associated with the ownership of real
property are often referred to as the owners.
homeowner's costs of ownership includes - ANSWER Mortgage, taxes, repairs and
maintenance, interest, insurance, utlilites
Capital Gain - ANSWER Gain on the sale of an asset for the seller
The National flood Insurance Program offers flood insurance to - ANSWER
Homeowners, Renters, Business Owners
Single Family home - ANSWER not attached to another dwelling
Condominium - ANSWER Multi-family complexes with individually owned units
Cooperative - ANSWER most often owned by a corporation, purchaser purchases
stock in the corporation and receives a proprietary lease on the unit
Townhomes - ANSWER sold as a distinct living unity on a individual lot but share a
common wall
Mixed use developments - ANSWER mix of residential, office and entertainment
venues in close proximity
Timeshare - ANSWER give the owner the right to occupy a property for certain amount
of time.
, First time homebuyer - ANSWER one who has never owned a home
homeowners insurance - ANSWER contract with insurance company to protect
homeowner from losses related to the structure, personal possessions and liability
Agency - ANSWER one person(agent) acts for or on behalf of another (principal)
Prinicipal - ANSWER client, give the agent the authority to act
Agent - ANSWER one who works for the principal (client)
Fiduciary - ANSWER relationship between the agent and the principal; relationship
based on trust
universal agent - ANSWER full authority to conduct business on behalf of the principal
General agent - ANSWER represents the principal in a particular type of transaction or
business
special agent - ANSWER limited duties are performed for the principal
Duties from the agent to principal - ANSWER Obedience, Loyalty, Disclosure,
Confidentiality, Accounting, Reasonable care (OLDCAR)
Client - ANSWER represented by agent
Customer - ANSWER not represented by agent
express authority - ANSWER oral instructions given to the agent by the principal
I Exam Questions and Correct Answers
Latest Versions 2025 GRADED A+
Appraisal - ANSWER Providing a professional opinion of the value of real propery
RMLO's in TX are licensed through the - ANSWER Texas Dept of Savings and
Mortgage Lending
Land - ANSWER Surface of the earth extending to the center and upward above the
surface to infinity, includes natural things-trees, crops and water
Real Estate - ANSWER all that is encompassed in land, with the addition of all
man-made additions to the land, such as roads, houses and commercial buildings
Real Property - ANSWER includes the rights that a person has in the land, goes
beyond physical real estate
Severable - ANSWER common for different individuals to own different rights of the
same piece of land; surface owners do not own the subsurface rights to their property.
Surface rights - ANSWER owner has right to improve or develop the surface and use
resources extracted from or near the surface, including stone, gravel, water and
limestone
subsurface rights - ANSWER include the rights to oil, gas and other minerals,
commonly conveyed through a lease, mineral deed or by reservation
Air rights - ANSWER extend above the surface without limitation, can be leased, sold
or mortgaged. prohibit any activity that blocks the view of a building, cell phone
transmitter tower or billboard
Solar access - ANSWER property owners have a right to reasonable amount of
sunlight for heating. roman law dating back 2000 years
Surface rights - ANSWER transferred to new owners in total
Royalty rights - ANSWER right to collect a royalty for oil and gas production
,Executive Rights - ANSWER right to execute a contract or lease for the exploration of
oil and gas
Bundle of Rights - ANSWER Rights that are associated with the ownership of real
property are often referred to as the owners.
homeowner's costs of ownership includes - ANSWER Mortgage, taxes, repairs and
maintenance, interest, insurance, utlilites
Capital Gain - ANSWER Gain on the sale of an asset for the seller
The National flood Insurance Program offers flood insurance to - ANSWER
Homeowners, Renters, Business Owners
Single Family home - ANSWER not attached to another dwelling
Condominium - ANSWER Multi-family complexes with individually owned units
Cooperative - ANSWER most often owned by a corporation, purchaser purchases
stock in the corporation and receives a proprietary lease on the unit
Townhomes - ANSWER sold as a distinct living unity on a individual lot but share a
common wall
Mixed use developments - ANSWER mix of residential, office and entertainment
venues in close proximity
Timeshare - ANSWER give the owner the right to occupy a property for certain amount
of time.
, First time homebuyer - ANSWER one who has never owned a home
homeowners insurance - ANSWER contract with insurance company to protect
homeowner from losses related to the structure, personal possessions and liability
Agency - ANSWER one person(agent) acts for or on behalf of another (principal)
Prinicipal - ANSWER client, give the agent the authority to act
Agent - ANSWER one who works for the principal (client)
Fiduciary - ANSWER relationship between the agent and the principal; relationship
based on trust
universal agent - ANSWER full authority to conduct business on behalf of the principal
General agent - ANSWER represents the principal in a particular type of transaction or
business
special agent - ANSWER limited duties are performed for the principal
Duties from the agent to principal - ANSWER Obedience, Loyalty, Disclosure,
Confidentiality, Accounting, Reasonable care (OLDCAR)
Client - ANSWER represented by agent
Customer - ANSWER not represented by agent
express authority - ANSWER oral instructions given to the agent by the principal
