TX Real Estate Appraisal Exam Prep Test
Bank Latest with 400 Multiple Choice
Questions and Correct Answers/ Texas
Real Estate Appraisal Practice Exam
Review (New!)
Section 1: Real Property Concepts & Characteristics
(Questions 1-60)
1. The earth's surface, extending downward to the center of the earth and upward
to infinity, including permanently-attached natural objects, is called:
• A) Real property
• B) Land
• C) Real estate
• D) A parcel
• Rationale: Land is defined as the earth's surface, the subsurface, and the airspace
above, including natural attachments like trees and water .
2. Real estate, plus all of the interests, benefits, and rights included in ownership,
is also known as:
• A) Land
• B) A fixture
• C) Real property
• D) An appurtenance
• Rationale: Real property includes the physical land and improvements, along
with the "bundle of rights" associated with ownership .
3. Which value-influencing DUST factor addresses the ease with which the
property can be conveyed to another?
, • A) Demand
• B) Utility
• C) Scarcity
• D) Transferability
• Rationale: Transferability is one of the four DUST factors (Demand, Utility,
Scarcity, Transferability) and refers to the ability to transfer ownership rights .
4. The presence of neighborhood amenities, such as shopping and schools, is an
example of which real estate value influencer?
• A) Economic
• B) Governmental
• C) Physical
• D) Social
• Rationale: Physical characteristics include location, amenities, and site features
that contribute to a property's desirability .
5. A property's value is reduced because a new highway bypasses the town,
diverting traffic away from local businesses. This is an example of:
• A) Functional obsolescence
• B) Physical deterioration
• C) External (economic) obsolescence
• D) Curable obsolescence
• Rationale: External obsolescence is a loss in value caused by factors outside the
property, such as changes in traffic patterns .
6. Which of the following best describes "external (economic) obsolescence"
caused by a new highway bypassing a town?
• A) It increases the property's accessibility, raising value
• B) It reduces traffic through the town, potentially decreasing commercial
property values
• C) It creates physical damage to the property
• D) It has no impact on property values
• Rationale: A bypass can divert traffic and customers away from the town,
reducing demand and causing external economic obsolescence .
7. The term "curable functional obsolescence" refers to:
• A) Obsolescence that cannot be corrected
Bank Latest with 400 Multiple Choice
Questions and Correct Answers/ Texas
Real Estate Appraisal Practice Exam
Review (New!)
Section 1: Real Property Concepts & Characteristics
(Questions 1-60)
1. The earth's surface, extending downward to the center of the earth and upward
to infinity, including permanently-attached natural objects, is called:
• A) Real property
• B) Land
• C) Real estate
• D) A parcel
• Rationale: Land is defined as the earth's surface, the subsurface, and the airspace
above, including natural attachments like trees and water .
2. Real estate, plus all of the interests, benefits, and rights included in ownership,
is also known as:
• A) Land
• B) A fixture
• C) Real property
• D) An appurtenance
• Rationale: Real property includes the physical land and improvements, along
with the "bundle of rights" associated with ownership .
3. Which value-influencing DUST factor addresses the ease with which the
property can be conveyed to another?
, • A) Demand
• B) Utility
• C) Scarcity
• D) Transferability
• Rationale: Transferability is one of the four DUST factors (Demand, Utility,
Scarcity, Transferability) and refers to the ability to transfer ownership rights .
4. The presence of neighborhood amenities, such as shopping and schools, is an
example of which real estate value influencer?
• A) Economic
• B) Governmental
• C) Physical
• D) Social
• Rationale: Physical characteristics include location, amenities, and site features
that contribute to a property's desirability .
5. A property's value is reduced because a new highway bypasses the town,
diverting traffic away from local businesses. This is an example of:
• A) Functional obsolescence
• B) Physical deterioration
• C) External (economic) obsolescence
• D) Curable obsolescence
• Rationale: External obsolescence is a loss in value caused by factors outside the
property, such as changes in traffic patterns .
6. Which of the following best describes "external (economic) obsolescence"
caused by a new highway bypassing a town?
• A) It increases the property's accessibility, raising value
• B) It reduces traffic through the town, potentially decreasing commercial
property values
• C) It creates physical damage to the property
• D) It has no impact on property values
• Rationale: A bypass can divert traffic and customers away from the town,
reducing demand and causing external economic obsolescence .
7. The term "curable functional obsolescence" refers to:
• A) Obsolescence that cannot be corrected
