TX 30 HOUR PRINCIPLES OF REAL ESTATE I EXAM
QUESTIONS UPDATED QUESTIONS AND CORRECT
ANSWERS
SECTION I: Real Property Characteristics & Legal Descriptions
1. All of the rights, privileges, and interests that a person can hold in real
property are collectively known as the:
A) Constitutional rights
B) Statutory rights
C) Bundle of rights
D) Civil rights
Rationale: The "bundle of rights" includes the rights of possession, control,
enjoyment, exclusion, and disposition. These are the fundamental rights that
come with real property ownership. Constitutional, statutory, and civil rights are
legal concepts but do not specifically describe the collection of ownership
interests in real property.
2. Which of the following are considered personal property and may be
harvested by the owner of the crop?
A) Trade fixtures
B) Fixtures
C) Severances
D) Emblements
Rationale: Emblements are crops that are considered personal property
and may be harvested by the owner of the crop, even if the land is sold. They are
treated as personal property rather than real property. Trade fixtures are items
used in a business that remain personal property, fixtures are items that have
,been permanently attached to land, and severances are items that were once
part of the land but have been removed.
3. Buildings, roads, and fences are all examples of:
A) Personal property
B) Private property
C) Improvements
D) Public property
Rationale: Improvements are additions to land that increase its value or
utility, such as buildings, roads, and fences. These are considered part of the real
property because they are permanently attached to the land.
4. Which of the following is an economic characteristic of land?
A) Indestructibility
B) Immobility
C) Situs
D) Nonhomogeneity
Rationale: Situs is an economic characteristic of land referring to its
location or position relative to other features. Indestructibility, immobility, and
nonhomogeneity are physical characteristics of land, not economic ones.
Economic characteristics include scarcity, situs, modification, and fixity.
5. A freeway has made commuting to a distant suburban neighborhood easier,
resulting in an increase in new home sales. This increase in sales is an example
of the economic characteristic of:
A) Scarcity
,B) Fixity
C) Situs
D) Modification
Rationale: Modification refers to how human-made changes, such as new
infrastructure, affect land value. The freeway is a human-made modification that
increased the desirability of the suburban neighborhood. Scarcity refers to the
limited supply of land, fixity refers to land being immovable, and situs refers to
location preference.
6. The supply of real estate is affected by which of the following?
A) Land cost
B) Building codes
C) Government regulations
D) All of these
Rationale: The supply of real estate is influenced by multiple factors
including land costs, building codes, and government regulations. All of these
factors can restrict or enable the development of new real estate, thereby
affecting supply.
7. A lawsuit was tried on a real estate matter. The judge ruled in the case, citing
the decision of a judge in a similar case that was tried ten years ago. The judge's
decision in the case was most likely based upon:
A) Statutory law
B) Civil law
C) Common law
D) Local ordinance
, Rationale: Common law is based on precedent, meaning that judges rely
on prior court decisions to guide their rulings. Statutory law is written law passed
by a legislature, civil law is a body of law dealing with private disputes, and local
ordinances are laws passed by local governments.
8. A license holder was tried in a state district court on a complaint arising from
a real estate transaction. The court ruled that, among other transgressions, the
defendant had violated the Texas Real Estate License Act. This decision of the
judge was based upon:
A) Statutory law
B) Civil law
C) Common law
D) Local ordinance
Rationale: The Texas Real Estate License Act (TRELA) is a statute passed by
the Texas Legislature. When a judge rules based on a statute, that decision is
based on statutory law, which is written law enacted by a legislative body.
9. RMLOs in Texas are licensed through:
A) Texas Real Estate Commission
B) National Mortgage Bankers Association
C) Texas Department of Savings and Mortgage Lending
D) Texas Savings and Loan Board
Rationale: Residential Mortgage Loan Originators (RMLOs) in Texas are
licensed through the Texas Department of Savings and Mortgage Lending. TREC
licenses real estate brokers and sales agents, not mortgage loan originators.
QUESTIONS UPDATED QUESTIONS AND CORRECT
ANSWERS
SECTION I: Real Property Characteristics & Legal Descriptions
1. All of the rights, privileges, and interests that a person can hold in real
property are collectively known as the:
A) Constitutional rights
B) Statutory rights
C) Bundle of rights
D) Civil rights
Rationale: The "bundle of rights" includes the rights of possession, control,
enjoyment, exclusion, and disposition. These are the fundamental rights that
come with real property ownership. Constitutional, statutory, and civil rights are
legal concepts but do not specifically describe the collection of ownership
interests in real property.
2. Which of the following are considered personal property and may be
harvested by the owner of the crop?
A) Trade fixtures
B) Fixtures
C) Severances
D) Emblements
Rationale: Emblements are crops that are considered personal property
and may be harvested by the owner of the crop, even if the land is sold. They are
treated as personal property rather than real property. Trade fixtures are items
used in a business that remain personal property, fixtures are items that have
,been permanently attached to land, and severances are items that were once
part of the land but have been removed.
3. Buildings, roads, and fences are all examples of:
A) Personal property
B) Private property
C) Improvements
D) Public property
Rationale: Improvements are additions to land that increase its value or
utility, such as buildings, roads, and fences. These are considered part of the real
property because they are permanently attached to the land.
4. Which of the following is an economic characteristic of land?
A) Indestructibility
B) Immobility
C) Situs
D) Nonhomogeneity
Rationale: Situs is an economic characteristic of land referring to its
location or position relative to other features. Indestructibility, immobility, and
nonhomogeneity are physical characteristics of land, not economic ones.
Economic characteristics include scarcity, situs, modification, and fixity.
5. A freeway has made commuting to a distant suburban neighborhood easier,
resulting in an increase in new home sales. This increase in sales is an example
of the economic characteristic of:
A) Scarcity
,B) Fixity
C) Situs
D) Modification
Rationale: Modification refers to how human-made changes, such as new
infrastructure, affect land value. The freeway is a human-made modification that
increased the desirability of the suburban neighborhood. Scarcity refers to the
limited supply of land, fixity refers to land being immovable, and situs refers to
location preference.
6. The supply of real estate is affected by which of the following?
A) Land cost
B) Building codes
C) Government regulations
D) All of these
Rationale: The supply of real estate is influenced by multiple factors
including land costs, building codes, and government regulations. All of these
factors can restrict or enable the development of new real estate, thereby
affecting supply.
7. A lawsuit was tried on a real estate matter. The judge ruled in the case, citing
the decision of a judge in a similar case that was tried ten years ago. The judge's
decision in the case was most likely based upon:
A) Statutory law
B) Civil law
C) Common law
D) Local ordinance
, Rationale: Common law is based on precedent, meaning that judges rely
on prior court decisions to guide their rulings. Statutory law is written law passed
by a legislature, civil law is a body of law dealing with private disputes, and local
ordinances are laws passed by local governments.
8. A license holder was tried in a state district court on a complaint arising from
a real estate transaction. The court ruled that, among other transgressions, the
defendant had violated the Texas Real Estate License Act. This decision of the
judge was based upon:
A) Statutory law
B) Civil law
C) Common law
D) Local ordinance
Rationale: The Texas Real Estate License Act (TRELA) is a statute passed by
the Texas Legislature. When a judge rules based on a statute, that decision is
based on statutory law, which is written law enacted by a legislative body.
9. RMLOs in Texas are licensed through:
A) Texas Real Estate Commission
B) National Mortgage Bankers Association
C) Texas Department of Savings and Mortgage Lending
D) Texas Savings and Loan Board
Rationale: Residential Mortgage Loan Originators (RMLOs) in Texas are
licensed through the Texas Department of Savings and Mortgage Lending. TREC
licenses real estate brokers and sales agents, not mortgage loan originators.
