1|Page
Texas Principles of Real Estate 1 With 250 Questions
and Correct Detailed Answers / TX Principles of
Real Estate Exam Real Qs and Correct Answers/
AYPO
National Association of REALTORS® (NAR) -
...ANSWER...✓✓ The largest professional organization in
the country for real estate professionals
Education Standards Advisory Committee (ESAC) -
...ANSWER...✓✓ Created by the Texas Legislature in 2011
to assess and recommend improvements to real estate
education standards, including curriculum and
requirements for course content and instructor
certification
Assessed value - ...ANSWER...✓✓ The price placed on a
home by a municipality to calculate property taxes
Depreciated value - ...ANSWER...✓✓ Calculated for
income tax purposes to determine basis for taxable
amount; accelerated depreciated programs have been
used by the federal government to stimulate the economy
,2|Page
Investment value - ...ANSWER...✓✓ One way to determine
investment value; the higher the ROI, the better the
investment
List price - ...ANSWER...✓✓ The amount for which an
owner has offered to sell a property
Market value - ...ANSWER...✓✓ The purchase price
agreed to by the buyer and seller sets the market value
Supply - ...ANSWER...✓✓ The amount of that item
available at a given time for a given price
Demand - ...ANSWER...✓✓ How many of a particular item
consumers are willing and able to buy at a given time for
a given price
Buyer's market - ...ANSWER...✓✓ When supply is high
and demand is low
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Seller's market - ...ANSWER...✓✓ When demand is high
and supply is low; also referred to as a "hot market"
Stagnant market - ...ANSWER...✓✓ When supply is low
and demand is also low; no one is buying or selling
License laws - ...ANSWER...✓✓ Designed to protect
consumers who are parties to real estate transactions
Annexation - ...ANSWER...✓✓ An attachment of personal
property to real property, thereby making it a fixture (also
known as an attachment)
Chattel - ...ANSWER...✓✓ Another word for personal
property
Control - ...ANSWER...✓✓ The right to determine how the
property will be used by the owner or by others
Disposition - ...ANSWER...✓✓ The right to dispose of any
interest in the property
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Emblements - ...ANSWER...✓✓ Another name for fruits of
industry, including crops of fruits, vegetables, wheat, and
corn
Enjoyment - ...ANSWER...✓✓ The right to use the property
in any legal way the owner desires
Exclusion - ...ANSWER...✓✓ The right to refuse others'
entry to or use of the property
Fruits of industry - ...ANSWER...✓✓ Plants that require
annual cultivation include crops of fruits, vegetables,
wheat, and corn. Fruits of industry are considered
personal property
Fruits of nature - ...ANSWER...✓✓ Plants in the ground
and attached to the soil that don't require annual
cultivation, including trees, perennial shrubs, and some
grasses; considered to be real estate and therefore
transfer with the land
Texas Principles of Real Estate 1 With 250 Questions
and Correct Detailed Answers / TX Principles of
Real Estate Exam Real Qs and Correct Answers/
AYPO
National Association of REALTORS® (NAR) -
...ANSWER...✓✓ The largest professional organization in
the country for real estate professionals
Education Standards Advisory Committee (ESAC) -
...ANSWER...✓✓ Created by the Texas Legislature in 2011
to assess and recommend improvements to real estate
education standards, including curriculum and
requirements for course content and instructor
certification
Assessed value - ...ANSWER...✓✓ The price placed on a
home by a municipality to calculate property taxes
Depreciated value - ...ANSWER...✓✓ Calculated for
income tax purposes to determine basis for taxable
amount; accelerated depreciated programs have been
used by the federal government to stimulate the economy
,2|Page
Investment value - ...ANSWER...✓✓ One way to determine
investment value; the higher the ROI, the better the
investment
List price - ...ANSWER...✓✓ The amount for which an
owner has offered to sell a property
Market value - ...ANSWER...✓✓ The purchase price
agreed to by the buyer and seller sets the market value
Supply - ...ANSWER...✓✓ The amount of that item
available at a given time for a given price
Demand - ...ANSWER...✓✓ How many of a particular item
consumers are willing and able to buy at a given time for
a given price
Buyer's market - ...ANSWER...✓✓ When supply is high
and demand is low
,3|Page
Seller's market - ...ANSWER...✓✓ When demand is high
and supply is low; also referred to as a "hot market"
Stagnant market - ...ANSWER...✓✓ When supply is low
and demand is also low; no one is buying or selling
License laws - ...ANSWER...✓✓ Designed to protect
consumers who are parties to real estate transactions
Annexation - ...ANSWER...✓✓ An attachment of personal
property to real property, thereby making it a fixture (also
known as an attachment)
Chattel - ...ANSWER...✓✓ Another word for personal
property
Control - ...ANSWER...✓✓ The right to determine how the
property will be used by the owner or by others
Disposition - ...ANSWER...✓✓ The right to dispose of any
interest in the property
, 4|Page
Emblements - ...ANSWER...✓✓ Another name for fruits of
industry, including crops of fruits, vegetables, wheat, and
corn
Enjoyment - ...ANSWER...✓✓ The right to use the property
in any legal way the owner desires
Exclusion - ...ANSWER...✓✓ The right to refuse others'
entry to or use of the property
Fruits of industry - ...ANSWER...✓✓ Plants that require
annual cultivation include crops of fruits, vegetables,
wheat, and corn. Fruits of industry are considered
personal property
Fruits of nature - ...ANSWER...✓✓ Plants in the ground
and attached to the soil that don't require annual
cultivation, including trees, perennial shrubs, and some
grasses; considered to be real estate and therefore
transfer with the land
