TEXAS REAL ESTATE EXAM; STATE PORTION | COMPLETE
QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE |
GRADED A+
• Real property -✓✓ 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 -✓✓ 1.Possession, 2.Use, 3.Encumber, 4.Exclusion, 5.Transfer
• Personal Property -✓✓ movable rather than being permanently attached to real estate
• Chattel -✓✓ personal property
• Fixture -✓✓ 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 -✓✓ crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property.
• Trade fixtures -✓✓ personal property that a business operator installs as part of the
business operations.
• MARIA -✓✓ Method of Attachment, Adaptability, Relationship, Intention, Agreement
• severance -✓✓ turning the item into personal property
• Economic Characteristics of Land -✓✓ scarcity, improvements, permanence of
investment, area preference
• Scarcity -✓✓ There's a limited supply of real property, particularly when considering a
specific area.
• Improvements -✓✓ Adding improvements to real property affects its value.
• Permanence of investment -✓✓ Investment in improving a property tends to be very
long term.
• Area preference (location) -✓✓ The location of a parcel can dramatically affect its
value.
• Physical Characteristics of Land -✓✓ Immobility, Indestructibility, Uniqueness
• Immobility -✓✓ In general, land doesn't move.
, • Indestructibility -✓✓ This refers to the fact that land can't be destroyed.
• Uniqueness -✓✓ Each property is unique.
• Metes and bounds -✓✓ 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 -✓✓ 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 -✓✓ 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 -✓✓ 36 square miles
• Survey -✓✓ licensed surveyor
• Governmental Powers -✓✓ P.E.T.E: Police power, eminent domain, taxation, escheat
• Police power -✓✓ right of public entities to establish regulations regarding the use of
the land.
• Eminent domain -✓✓ 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 -✓✓ government's right to impose property taxes
• Escheat -✓✓ The state takes property upon an owners death if there is no will & no
heirs exist.
• Condemnation -✓✓ administrative process by which the government exercises its
power of eminent domain.
• Inverse Condemnation -✓✓ when a property owner believes the use of his or her
property has been destroyed by a government action or regulation, even if the
government hasn't officially taken the property.
QUESTIONS AND CORRECT ANSWERS | 2026 UPDATE |
GRADED A+
• Real property -✓✓ 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 -✓✓ 1.Possession, 2.Use, 3.Encumber, 4.Exclusion, 5.Transfer
• Personal Property -✓✓ movable rather than being permanently attached to real estate
• Chattel -✓✓ personal property
• Fixture -✓✓ 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 -✓✓ crops or any type of seasonal/annual plantings that are cultivated for
profit. These are classified as personal property.
• Trade fixtures -✓✓ personal property that a business operator installs as part of the
business operations.
• MARIA -✓✓ Method of Attachment, Adaptability, Relationship, Intention, Agreement
• severance -✓✓ turning the item into personal property
• Economic Characteristics of Land -✓✓ scarcity, improvements, permanence of
investment, area preference
• Scarcity -✓✓ There's a limited supply of real property, particularly when considering a
specific area.
• Improvements -✓✓ Adding improvements to real property affects its value.
• Permanence of investment -✓✓ Investment in improving a property tends to be very
long term.
• Area preference (location) -✓✓ The location of a parcel can dramatically affect its
value.
• Physical Characteristics of Land -✓✓ Immobility, Indestructibility, Uniqueness
• Immobility -✓✓ In general, land doesn't move.
, • Indestructibility -✓✓ This refers to the fact that land can't be destroyed.
• Uniqueness -✓✓ Each property is unique.
• Metes and bounds -✓✓ 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 -✓✓ 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 -✓✓ 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 -✓✓ 36 square miles
• Survey -✓✓ licensed surveyor
• Governmental Powers -✓✓ P.E.T.E: Police power, eminent domain, taxation, escheat
• Police power -✓✓ right of public entities to establish regulations regarding the use of
the land.
• Eminent domain -✓✓ 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 -✓✓ government's right to impose property taxes
• Escheat -✓✓ The state takes property upon an owners death if there is no will & no
heirs exist.
• Condemnation -✓✓ administrative process by which the government exercises its
power of eminent domain.
• Inverse Condemnation -✓✓ when a property owner believes the use of his or her
property has been destroyed by a government action or regulation, even if the
government hasn't officially taken the property.
