TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL EXAM PRACTICE TEST 2025/2026 COMPLETE QUESTIONS BANK WITH VERIFIED CORRECT ANSWERS|| 100% GUARANTEED PASS RECENT VERSION (2025)

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TEXAS PRINCIPLES OF REAL ESTATE 1
FINAL EXAM PRACTICE TEST
2025/2026 COMPLETE QUESTIONS
BANK WITH VERIFIED CORRECT
ANSWERS|| 100% GUARANTEED PASS
<RECENT VERSION>

1. What kind of professionals manage the legal aspects of a development
project?-ANSWER🗸 Real Estate attorneys, title companies, surveyors,
property insurance companies and government regulatory officials

2. What types of professionals are involved in the transfer of rights and interest
in Real Estate?-ANSWER🗸 Titles companies, Real Estate Brokers/ Sales
Persons, Mortgage Brokers, Mortgage Bankers, Appraisers, Insurers

3. Property is classified into what three types?-ANSWER🗸 Residential,
Commercial, and Investment properties

4. Real Estate Agents in Texas would benefit from belonging to which two
trade organizations?-ANSWER🗸 NAR - National Association of Realtors

Texas Assoc. of Realtors

5. A certain property has the following liens recorded against it: a mortgage
lien dating from three years ago; a mechanic's lien dating from two years
ago; a real estate tax lien for the current year; and a second mortgage lien
dating from the current year. In case of a foreclosure, which of these liens
will be paid first?-ANSWER🗸 Real Estate Tax lien

,6. Lis pendens-ANSWER🗸 A lis pendens gives public notice that the
mortgaged property may soon have a judgment issued against it.

7. What three types of foreclosure processes enforce mortgage liens?-
ANSWER🗸 Judicial, Non Judicial, Strict

8. Short sale-ANSWER🗸 occurs when a lender allows a borrower in default on
mortgage loan payments to sell the mortgaged property for less money than
necessary to satisfy the loan

9. Strict foreclosure-ANSWER🗸 is a court proceeding that gives the lender
title directly, by court order, instead of giving cash proceeds from a public
sale.

10.Writ of Execution:-ANSWER🗸 Court orders property to be sold

11.What is a municipal utility lien-ANSWER🗸 A municipality placing a utility
lien against a resident's real property for failure to pay utility bills

12.A court-ordered lien against all real or personal property of a parent who
defaults on child support is an example of what kind of lien?-ANSWER🗸
Judgment Lien

13.Home Equity Loan-ANSWER🗸 Using money paid for house towards,
something you need, like a pool car

14.Subordination:-ANSWER🗸 A lienor can change the priority of a junior lien
by voluntarily agreeing to subordinate, or lower, the lien's position in the
hierarchy.

15.Tenancy in common-ANSWER🗸 also known as the estate in common, is
the most common form of co-ownership when the owners are not married.
The defining characteristics are:

(Each owns own share), hold separate titles to individual interests

If die, share goes to heirs (children/ family)

, (Condo)

16.Joint Tenancy:-ANSWER🗸 2 Owns as if they were a single person. Must be
created by written agreement, equal ownership, hold single title to property (
If 4 co tenants each owns 25% of property)Survivorship -In most states, joint
tenants enjoy rights of survivorship. That means if a joint tenant dies, all
interests and rights pass to the surviving joint tenants

17.What are the three main forms of ownership?-ANSWER🗸 In severalty -
Held by only one owner

18.*In co-ownership - Held by two or more people *In trust - Held by a third
party for the benefit of someone els

What three types of co-ownership does Texas recognize?-ANSWER🗸
tenancy in common,

19.Joint tenancy Community property

What happens to community property upon the death of a spouse?-
ANSWER🗸 Half of the deceased's community property passes to the
surviving spouse, and the other half passes to the decedent's heirs.

20.What form of Ownership is a condominium?-ANSWER🗸 Fee Simple
Interest and tenants in common

A condominium is a hybrid form of ownership which combines ownership
of a fee simple interest in the airspace within a unit with ownership of an
undivided share, as a tenant in common, of the entire property's common
elements.

21.Syndicates-ANSWER🗸 a descriptive term for a group of two or more
people who combine their financial resources to achieve certain investment
objectives.

, 22.In a limited partnership, what is the liability difference between a general
partner and a limited partner?-ANSWER🗸 Limited partners are liable only
to the extent of their investment. General partners have unlimited liability.

23.What type of lease is used in co-ops?-ANSWER🗸 Propietary

24.Which of the following is a descriptive, non-legal term for a group of two or
more people who combine their financial resources to achieve certain
investment objectives?-ANSWER🗸 Syndicate

25.A limited partnership must have how many general partners with unlimited
liability?-ANSWER🗸 at least one

26.All LLCs must have at least-ANSWER🗸 one member (john)

27.What is it called when just a few people hold stock in a corporation?-
ANSWER🗸 Closely Held

28.What type of organization provides the liability advantages of a corporation,
without the regulations corporations must deal with?-ANSWER🗸 LLC

29.Joint venture-ANSWER🗸 partnerships for a single undertaking rather than a
continuing business.

Separate Property:

30.Community Property:-ANSWER🗸 belongs to one spouse, belongs to two

31.In Texas, community property laws-ANSWER🗸 are equal partners

32.To create a joint tenancy,-ANSWER🗸 These are referred to as the four
unities (time, title, interest, possession).

33.buyer agency or tenant representation agreement-ANSWER🗸 authorizes a
broker to represent a buyer or tenant.