Texas Real Estate Exam (National)
real property -correct answer-the tangible real estate and intangible rights associated with
the ownership of real estate
-transfers by deed or will
personal property -correct 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 -correct 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 -correct 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 -correct answer-metes and bounds, the rectangular survey
system, lot-block-tract system, monuments
physical characteristics of land (DUI) -correct answer--durability
-uniqueness
-immobility
economic characteristics of land (SAFE) -correct answer--situs
-alteration
-fixity
-economic scarcity
encumbrance -correct 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 -correct answer-a charge against property as security for a debt
,voluntary lien -correct 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 -correct 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 -correct answer-a physical intrusion on someone else's property without
direct permission
deed restrictions (CC&R's) -correct answer-sets limits on how the property may be used by
the owner (covenants, conditions, & restrictions)
-created by the grantor
easement -correct answer-a right to use part or all of another individual's land or property
for a specific purpose and length of time
estate -correct answer-an interest in real property
freehold estate -correct answer-the property owner has actual ownership and possession of
the land, which lasts for an unspecified period of time
statutory estate -correct answer-created by law
-community property & homestead in Texas
forms of ownership -correct answer--individual ownership
-co-ownership
-held in trust
types of co-ownership -correct answer--tenancy in common
-joint tenancy
-community property
-partnerships
held in trust -correct answer-a property is held by one party for the benefit of another
police power -correct 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 -correct 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 -correct answer-"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment -correct answer-taxes levied on property to pay for public improvements
escheat -correct answer-if an individual dies without a will or surviving spouse, their
property will pass to the state
water rights -correct answer--riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value -correct 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) -correct answer--demand
-utility
-scarcity
-transferability
Comparative Market Analysis (CMA) -correct answer-an informal system for establishing the
value of real property which works by comparing the prices of recently sold, pending, and
currently-for-sale homes that are similar in size and features to the subject property
appraisal -correct answer-an estimate of present value
-an opinion
-appraisers most often asked to determine market value
approaches to appraisal -correct answer--market or sales comparison approach
-income approach
-cost approach
market or sales comparison approach -correct answer-comparisons with known sales in the
same area
real property -correct answer-the tangible real estate and intangible rights associated with
the ownership of real estate
-transfers by deed or will
personal property -correct 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 -correct 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 -correct 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 -correct answer-metes and bounds, the rectangular survey
system, lot-block-tract system, monuments
physical characteristics of land (DUI) -correct answer--durability
-uniqueness
-immobility
economic characteristics of land (SAFE) -correct answer--situs
-alteration
-fixity
-economic scarcity
encumbrance -correct 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 -correct answer-a charge against property as security for a debt
,voluntary lien -correct 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 -correct 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 -correct answer-a physical intrusion on someone else's property without
direct permission
deed restrictions (CC&R's) -correct answer-sets limits on how the property may be used by
the owner (covenants, conditions, & restrictions)
-created by the grantor
easement -correct answer-a right to use part or all of another individual's land or property
for a specific purpose and length of time
estate -correct answer-an interest in real property
freehold estate -correct answer-the property owner has actual ownership and possession of
the land, which lasts for an unspecified period of time
statutory estate -correct answer-created by law
-community property & homestead in Texas
forms of ownership -correct answer--individual ownership
-co-ownership
-held in trust
types of co-ownership -correct answer--tenancy in common
-joint tenancy
-community property
-partnerships
held in trust -correct answer-a property is held by one party for the benefit of another
police power -correct 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 -correct 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 -correct answer-"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment -correct answer-taxes levied on property to pay for public improvements
escheat -correct answer-if an individual dies without a will or surviving spouse, their
property will pass to the state
water rights -correct answer--riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value -correct 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) -correct answer--demand
-utility
-scarcity
-transferability
Comparative Market Analysis (CMA) -correct answer-an informal system for establishing the
value of real property which works by comparing the prices of recently sold, pending, and
currently-for-sale homes that are similar in size and features to the subject property
appraisal -correct answer-an estimate of present value
-an opinion
-appraisers most often asked to determine market value
approaches to appraisal -correct answer--market or sales comparison approach
-income approach
-cost approach
market or sales comparison approach -correct answer-comparisons with known sales in the
same area
