©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
Texas Real Estate Exam (National) Study
Guide with Complete Solutions
real property - Answer✔️✔️-the tangible real estate and intangible rights associated with
the ownership of real estate
-transfers by deed or will
personal property - 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 - 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 - 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 - Answer✔️✔️-metes and bounds, the rectangular survey
system, lot-block-tract system, monuments
physical characteristics of land (DUI) - Answer✔️✔️--durability
-uniqueness
Page | 1
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
-immobility
economic characteristics of land (SAFE) - Answer✔️✔️--situs
-alteration
-fixity
-economic scarcity
encumbrance - 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 - Answer✔️✔️-a charge against property as security for a debt
voluntary lien - 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 - 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 - Answer✔️✔️-a physical intrusion on someone else's property without
direct permission
deed restrictions (CC&R's) - Answer✔️✔️-sets limits on how the property may be used by
the owner (covenants, conditions, & restrictions)
Page | 2
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
-created by the grantor
easement - Answer✔️✔️-a right to use part or all of another individual's land or property
for a specific purpose and length of time
estate - Answer✔️✔️-an interest in real property
freehold estate - Answer✔️✔️-the property owner has actual ownership and possession
of the land, which lasts for an unspecified period of time
statutory estate - Answer✔️✔️-created by law
-community property & homestead in Texas
forms of ownership - Answer✔️✔️--individual ownership
-co-ownership
-held in trust
types of co-ownership - Answer✔️✔️--tenancy in common
-joint tenancy
-community property
-partnerships
held in trust - Answer✔️✔️-a property is held by one party for the benefit of another
police power - 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 - Answer✔️✔️-the power of the government to take private property from
an owner at all times
-condemnation: the process of taking private property
Page | 3
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
property taxes - Answer✔️✔️-"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment - Answer✔️✔️-taxes levied on property to pay for public
improvements
escheat - Answer✔️✔️-if an individual dies without a will or surviving spouse, their
property will pass to the state
water rights - Answer✔️✔️--riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value - 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) - Answer✔️✔️--demand
-utility
-scarcity
-transferability
Comparative Market Analysis (CMA) - 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 - Answer✔️✔️-an estimate of present value
-an opinion
-appraisers most often asked to determine market value
Page | 4
Texas Real Estate Exam (National) Study
Guide with Complete Solutions
real property - Answer✔️✔️-the tangible real estate and intangible rights associated with
the ownership of real estate
-transfers by deed or will
personal property - 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 - 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 - 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 - Answer✔️✔️-metes and bounds, the rectangular survey
system, lot-block-tract system, monuments
physical characteristics of land (DUI) - Answer✔️✔️--durability
-uniqueness
Page | 1
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
-immobility
economic characteristics of land (SAFE) - Answer✔️✔️--situs
-alteration
-fixity
-economic scarcity
encumbrance - 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 - Answer✔️✔️-a charge against property as security for a debt
voluntary lien - 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 - 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 - Answer✔️✔️-a physical intrusion on someone else's property without
direct permission
deed restrictions (CC&R's) - Answer✔️✔️-sets limits on how the property may be used by
the owner (covenants, conditions, & restrictions)
Page | 2
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
-created by the grantor
easement - Answer✔️✔️-a right to use part or all of another individual's land or property
for a specific purpose and length of time
estate - Answer✔️✔️-an interest in real property
freehold estate - Answer✔️✔️-the property owner has actual ownership and possession
of the land, which lasts for an unspecified period of time
statutory estate - Answer✔️✔️-created by law
-community property & homestead in Texas
forms of ownership - Answer✔️✔️--individual ownership
-co-ownership
-held in trust
types of co-ownership - Answer✔️✔️--tenancy in common
-joint tenancy
-community property
-partnerships
held in trust - Answer✔️✔️-a property is held by one party for the benefit of another
police power - 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 - Answer✔️✔️-the power of the government to take private property from
an owner at all times
-condemnation: the process of taking private property
Page | 3
, ©SOPHIABENNETT_2024/2025 EXAM SERIES Monday, September 2, 2024 9:52 AM
property taxes - Answer✔️✔️-"ad valorem" taxes (according to value)
-unpaid taxes create automatic lien (highest priority) on the property
special assessment - Answer✔️✔️-taxes levied on property to pay for public
improvements
escheat - Answer✔️✔️-if an individual dies without a will or surviving spouse, their
property will pass to the state
water rights - Answer✔️✔️--riparian rights: flowing water
-littoral rights: lakes or oceans
-transferred by deed or conveyance
market value - 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) - Answer✔️✔️--demand
-utility
-scarcity
-transferability
Comparative Market Analysis (CMA) - 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 - Answer✔️✔️-an estimate of present value
-an opinion
-appraisers most often asked to determine market value
Page | 4
