Texas Real Estate Exam Questions with Correct Answers 100% Verified By Experts| Latest
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Subsurface Rights Ownership rights in a parcel of real estate to the water, minerals, gas, oil,
and so forth that lie beneath the surface of the property.
Air Rights The right to use the open space above a property, usually allowing the surface to
be used for another purpose.
Riparian Rights A legal right of a landowner who owns land next to a natural watercourse to
reasonable use of whatever water flows past the property.
Littoral Rights rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake
Grantor must sign the deed and the signature must be acknowledged
Grantee The person receiving title to real estate
Granting Clause words of conveyance that states the grantor's intention to convey the
property
Habendum Clause have, hold
General Warranty Deed A deed in which the grantor fully warrants good, clear title to the
premises. Used in most real estate deed transfers, a general warranty deed offers the greatest
protection of any deed.
Special Warranty Deed covers only the current grantor's time of ownership
,Bargain and Sale Deed Foreclosure sale
Quitclaim Deed Includes no warranties of any kind
Voluntary Alienation The transfer of title by a deed.
Involuntary Alienation A transfer of title to real property without the owner's consent .
Marketable Title Good or clear title, reasonably free from the risk of litigation over possible
defects.
Insurable Title Title to land that a title company will insure.
appraisal process Identify the problem, Data Collection, Analyze Data, Apply 3 Approaches
(Sales Comparison, Income Approach, Cost), Reconciliation
Sales Comparison Approach (Market Data Approach) One of the three methods in the
appraisal process. A means of comparing similar type properties, which have recently sold, to
the subject property. Commonly used in comparing residential properties.
Income Approach The process of estimating the value of an income-producing property
through capitalization of the annual net income expected to be produced by the property
during its remaining useful life.
Cost Approach A method of estimating value based on the economic principle of
substitution; the value of a building cannot be greater than the cost of purchasing a similar site
and constructing a building of equal utility.
, Competititve/Comparative Market Analysis (CMA) Document the relevant information
about the subject property (lot size, square footage, number of rooms, features, condition, etc.)
Select comparables
Adjust the comparables
Determine a list price range for the subject property based on the adjusted comparables
broker's price opinion (BPO) An opinion of real estate value commissioned by a bank or an
attorney and provided by a broker.
Express Contract A contract in which the terms of the agreement are fully and explicitly
stated in words, oral or written.
Implied Contract A contract formed in whole or in part from the conduct of the parties.
Unilateral Contract promise in exchange for an act
Bilateral Contract promise for a promise
Offeror making the offer
Offeree A person to whom an offer is made.
Consideration something of value exchanged for something else of value
Executed Contract A contract that has been completely performed by both parties.
executory contract contract not fully performed on both sides
Update Guaranteed Success
Subsurface Rights Ownership rights in a parcel of real estate to the water, minerals, gas, oil,
and so forth that lie beneath the surface of the property.
Air Rights The right to use the open space above a property, usually allowing the surface to
be used for another purpose.
Riparian Rights A legal right of a landowner who owns land next to a natural watercourse to
reasonable use of whatever water flows past the property.
Littoral Rights rights of a landowner adjacent to a lake
Remember "L" - Littoral/Lake
Grantor must sign the deed and the signature must be acknowledged
Grantee The person receiving title to real estate
Granting Clause words of conveyance that states the grantor's intention to convey the
property
Habendum Clause have, hold
General Warranty Deed A deed in which the grantor fully warrants good, clear title to the
premises. Used in most real estate deed transfers, a general warranty deed offers the greatest
protection of any deed.
Special Warranty Deed covers only the current grantor's time of ownership
,Bargain and Sale Deed Foreclosure sale
Quitclaim Deed Includes no warranties of any kind
Voluntary Alienation The transfer of title by a deed.
Involuntary Alienation A transfer of title to real property without the owner's consent .
Marketable Title Good or clear title, reasonably free from the risk of litigation over possible
defects.
Insurable Title Title to land that a title company will insure.
appraisal process Identify the problem, Data Collection, Analyze Data, Apply 3 Approaches
(Sales Comparison, Income Approach, Cost), Reconciliation
Sales Comparison Approach (Market Data Approach) One of the three methods in the
appraisal process. A means of comparing similar type properties, which have recently sold, to
the subject property. Commonly used in comparing residential properties.
Income Approach The process of estimating the value of an income-producing property
through capitalization of the annual net income expected to be produced by the property
during its remaining useful life.
Cost Approach A method of estimating value based on the economic principle of
substitution; the value of a building cannot be greater than the cost of purchasing a similar site
and constructing a building of equal utility.
, Competititve/Comparative Market Analysis (CMA) Document the relevant information
about the subject property (lot size, square footage, number of rooms, features, condition, etc.)
Select comparables
Adjust the comparables
Determine a list price range for the subject property based on the adjusted comparables
broker's price opinion (BPO) An opinion of real estate value commissioned by a bank or an
attorney and provided by a broker.
Express Contract A contract in which the terms of the agreement are fully and explicitly
stated in words, oral or written.
Implied Contract A contract formed in whole or in part from the conduct of the parties.
Unilateral Contract promise in exchange for an act
Bilateral Contract promise for a promise
Offeror making the offer
Offeree A person to whom an offer is made.
Consideration something of value exchanged for something else of value
Executed Contract A contract that has been completely performed by both parties.
executory contract contract not fully performed on both sides
