Texas Principles of Real Estate 1: Key Terms
A business structure that combines the pass-through taxation of a partnership or sole proprietorship
with the limited liability of a corporation. - ✔✔Limited Liability Company (LLC)
A category of real property created as a result of combining the land and its improvements for a single
highest and best use. - ✔✔Special Purpose Property
A claim against a property that provides security for the repayment of a debt or an obligation of the
property owner. - ✔✔Lien
A claim, charge, or liability that attaches to, and is binding on real estate. - ✔✔Encumbrance
A condition of a contract expressing the essential nature of performance of the contract by a party in a
specified period of time. - ✔✔"Time is of the essence"
A contract by which a buyer and seller agree to the terms of a sale. - ✔✔Sales Contract
A contract in which a property owner employs a real estate broker to market the property described in
the contract. - ✔✔Listing Contract
A contract in which each party promises to do something. - ✔✔Bilateral Contract
A contract in which something remains to be done by one or both of the parties. - ✔✔Executory
Contract
A contract that complies with all of the essential elements of a contact, and is enforceable and binding
on all parties. - ✔✔Valid Contract
A contract that has been fully performed - ✔✔Executed Contract
,A contract that has been put into words, either spoken or written. - ✔✔Express Contract
A division of real or personal property or the proceeds therefrom among co-owners. - ✔✔Partition
A down payment made by a purchaser of real estate as evidence of good faith. - ✔✔Earnest Money
Deposit
A federal law protecting the rights of individuals with physical or mental impairments. - ✔✔Americans
with Disabilities Act (ADA)
A federal law that prohibits all discrimination on the basis of race. - ✔✔Civil Rights Act of 1866
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of
race, color, religion, gender, national origin, handicap, or familial status. - ✔✔Fair Housing Act of 1968
A fixed object and point established by surveyors to establish land locations. - ✔✔Monument
A form of action taken to impose a tax. - ✔✔Tax Levy
A form of cluster zoning providing for both residential and commercial land uses within a zoned area. -
✔✔Planned Unit Development (PUD)
A form of ownership in which stockholders in a corporation occupy property owned by the corporation
under a lease. - ✔✔Cooperative
A form of ownership of real property recognized in all states that consists of individual ownership of
some aspects and co-ownership in other aspects of the property. - ✔✔Condominium
, A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable
estate. - ✔✔Life Estate
A grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress. -
✔✔Easement by Voluntary Grant
A law establishing the time period within which certain lawsuits may be brought. - ✔✔Statute of
Limitations
A law that prohibited discrimination on the basis of race, sex, color, national origin, or gender in any
housing program receiving federal money. - ✔✔Civil Rights Act of 1964
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have
the property sold for payment of the amount of the judgment. - ✔✔Judgment Lien
A legal device whereby one person transfers ownership of property to someone else to hold or manage
for the benefit of a third party. - ✔✔Trusts
A legal life estate in land that is owned and occupied as a family home. - ✔✔Homestead
A license or contractual or membership right of occupancy in a project which is not coupled with an
estate in the real property. - ✔✔Time-Share
A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal
income tax liens, etc.). - ✔✔Involuntary Lien
A lien on all the property of a debtor. - ✔✔General Lien
A lien that attaches to one specific property only. - ✔✔Specific Lien
A limitation on the use of real property. - ✔✔Restriction
A business structure that combines the pass-through taxation of a partnership or sole proprietorship
with the limited liability of a corporation. - ✔✔Limited Liability Company (LLC)
A category of real property created as a result of combining the land and its improvements for a single
highest and best use. - ✔✔Special Purpose Property
A claim against a property that provides security for the repayment of a debt or an obligation of the
property owner. - ✔✔Lien
A claim, charge, or liability that attaches to, and is binding on real estate. - ✔✔Encumbrance
A condition of a contract expressing the essential nature of performance of the contract by a party in a
specified period of time. - ✔✔"Time is of the essence"
A contract by which a buyer and seller agree to the terms of a sale. - ✔✔Sales Contract
A contract in which a property owner employs a real estate broker to market the property described in
the contract. - ✔✔Listing Contract
A contract in which each party promises to do something. - ✔✔Bilateral Contract
A contract in which something remains to be done by one or both of the parties. - ✔✔Executory
Contract
A contract that complies with all of the essential elements of a contact, and is enforceable and binding
on all parties. - ✔✔Valid Contract
A contract that has been fully performed - ✔✔Executed Contract
,A contract that has been put into words, either spoken or written. - ✔✔Express Contract
A division of real or personal property or the proceeds therefrom among co-owners. - ✔✔Partition
A down payment made by a purchaser of real estate as evidence of good faith. - ✔✔Earnest Money
Deposit
A federal law protecting the rights of individuals with physical or mental impairments. - ✔✔Americans
with Disabilities Act (ADA)
A federal law that prohibits all discrimination on the basis of race. - ✔✔Civil Rights Act of 1866
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of
race, color, religion, gender, national origin, handicap, or familial status. - ✔✔Fair Housing Act of 1968
A fixed object and point established by surveyors to establish land locations. - ✔✔Monument
A form of action taken to impose a tax. - ✔✔Tax Levy
A form of cluster zoning providing for both residential and commercial land uses within a zoned area. -
✔✔Planned Unit Development (PUD)
A form of ownership in which stockholders in a corporation occupy property owned by the corporation
under a lease. - ✔✔Cooperative
A form of ownership of real property recognized in all states that consists of individual ownership of
some aspects and co-ownership in other aspects of the property. - ✔✔Condominium
, A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable
estate. - ✔✔Life Estate
A grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress. -
✔✔Easement by Voluntary Grant
A law establishing the time period within which certain lawsuits may be brought. - ✔✔Statute of
Limitations
A law that prohibited discrimination on the basis of race, sex, color, national origin, or gender in any
housing program receiving federal money. - ✔✔Civil Rights Act of 1964
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have
the property sold for payment of the amount of the judgment. - ✔✔Judgment Lien
A legal device whereby one person transfers ownership of property to someone else to hold or manage
for the benefit of a third party. - ✔✔Trusts
A legal life estate in land that is owned and occupied as a family home. - ✔✔Homestead
A license or contractual or membership right of occupancy in a project which is not coupled with an
estate in the real property. - ✔✔Time-Share
A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal
income tax liens, etc.). - ✔✔Involuntary Lien
A lien on all the property of a debtor. - ✔✔General Lien
A lien that attaches to one specific property only. - ✔✔Specific Lien
A limitation on the use of real property. - ✔✔Restriction
