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