TEXAS REAL ESTATE EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
Real property - ANS all the legal rights, powers, and privileges of real estate ownership. The
rights of ownership are often referred to as the bundle of rights.
Bundle of Rights - ANS 1.Possession, 2.Use, 3.Encumber, 4.Exclusion, 5.Transfer
Personal Property - ANS movable rather than being permanently attached to real estate
Chattel - ANS personal property
Fixture - ANS An item of personal property that has been converted to real property by being
permanently affixed to the realty. Ex: cabinets, carpet, built-in shelves
Emblements - ANS crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property.
Trade fixtures - ANS personal property that a business operator installs as part of the
business operations.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,MARIA - ANS Method of Attachment, Adaptability, Relationship, Intention, Agreement
severance - ANS turning the item into personal property
Economic Characteristics of Land - ANS scarcity, improvements, permanence of investment,
area preference
Scarcity - ANS There's a limited supply of real property, particularly when considering a
specific area.
Improvements - ANS Adding improvements to real property affects its value.
Permanence of investment - ANS Investment in improving a property tends to be very long
term.
Area preference (location) - ANS The location of a parcel can dramatically affect its value.
Physical Characteristics of Land - ANS Immobility, Indestructibility, Uniqueness
Immobility - ANS In general, land doesn't move.
Indestructibility - ANS This refers to the fact that land can't be destroyed.
Uniqueness - ANS Each property is unique.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Metes and bounds - ANS A method of land description which involves identifying distances
and directions and makes use of both the physical boundaries and measurements of the land.
Lot and block - ANS A method of land description frequently used after land has been
subdivided into building lots; also referred to as the recorded plat method. (Must have a plat
map to find the property)
Government survey or rectangular survey - ANS This is a form of legal description used in
most central and western states. It uses a system of horizontal and vertical lines that divide the
land into squares called townships. The north-south lines are called range lines. The east-west
lines are called township lines. Each township is 36 square miles. Each square mile is called a
section. Property is identified by its location within a township and section.
townships - ANS 36 square miles
Survey - ANS licensed surveyor
Governmental Powers - ANS P.E.T.E: Police power, eminent domain, taxation, escheat
Police power - ANS right of public entities to establish regulations regarding the use of the
land.
Eminent domain - ANS right of a public entity to take private property in exchange for a fair
price when the reason for the taking is for the public good.
Taxation - ANS government's right to impose property taxes
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2026.
Real property - ANS all the legal rights, powers, and privileges of real estate ownership. The
rights of ownership are often referred to as the bundle of rights.
Bundle of Rights - ANS 1.Possession, 2.Use, 3.Encumber, 4.Exclusion, 5.Transfer
Personal Property - ANS movable rather than being permanently attached to real estate
Chattel - ANS personal property
Fixture - ANS An item of personal property that has been converted to real property by being
permanently affixed to the realty. Ex: cabinets, carpet, built-in shelves
Emblements - ANS crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property.
Trade fixtures - ANS personal property that a business operator installs as part of the
business operations.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,MARIA - ANS Method of Attachment, Adaptability, Relationship, Intention, Agreement
severance - ANS turning the item into personal property
Economic Characteristics of Land - ANS scarcity, improvements, permanence of investment,
area preference
Scarcity - ANS There's a limited supply of real property, particularly when considering a
specific area.
Improvements - ANS Adding improvements to real property affects its value.
Permanence of investment - ANS Investment in improving a property tends to be very long
term.
Area preference (location) - ANS The location of a parcel can dramatically affect its value.
Physical Characteristics of Land - ANS Immobility, Indestructibility, Uniqueness
Immobility - ANS In general, land doesn't move.
Indestructibility - ANS This refers to the fact that land can't be destroyed.
Uniqueness - ANS Each property is unique.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Metes and bounds - ANS A method of land description which involves identifying distances
and directions and makes use of both the physical boundaries and measurements of the land.
Lot and block - ANS A method of land description frequently used after land has been
subdivided into building lots; also referred to as the recorded plat method. (Must have a plat
map to find the property)
Government survey or rectangular survey - ANS This is a form of legal description used in
most central and western states. It uses a system of horizontal and vertical lines that divide the
land into squares called townships. The north-south lines are called range lines. The east-west
lines are called township lines. Each township is 36 square miles. Each square mile is called a
section. Property is identified by its location within a township and section.
townships - ANS 36 square miles
Survey - ANS licensed surveyor
Governmental Powers - ANS P.E.T.E: Police power, eminent domain, taxation, escheat
Police power - ANS right of public entities to establish regulations regarding the use of the
land.
Eminent domain - ANS right of a public entity to take private property in exchange for a fair
price when the reason for the taking is for the public good.
Taxation - ANS government's right to impose property taxes
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
