Texas Real Estate Exam-Focused Flashcards

A collection of essential terms and definitions for the Texas Real Estate Exam, covering property types, ownership, deeds, valuation, agency, contracts, and legal acts.

Real Property

Land and everything permanently attached to it.

Fixture

Personal property attached to land that becomes real property.

Trade Fixture

Business property installed by a tenant and removable before lease expiration.

Appurtenance

A right or improvement that belongs to the property.

Easement

Right to use another person's land.

Encroachment

Improvement that extends onto another's property.

Fee Simple Absolute

Highest form of ownership.

Life Estate

Ownership for the duration of someone's life.

Joint Tenancy

Ownership with right of survivorship.

Tenancy in Common

Co-ownership without survivorship.

General Warranty Deed

Provides the greatest protection to the buyer.

Quitclaim Deed

Transfers ownership interest without warranties.

Market Value

Most probable price a property will bring.

Appraisal

Professional estimate of value.

Appreciation

Increase in value.

Depreciation

Loss in value.

Agency

Relationship between principal and agent.

Fiduciary Duty

Highest duty of loyalty and care.

Offer

Proposal to enter a contract.

Acceptance

Agreement to an offer.

Consideration

Something of value exchanged.

Earnest Money

Deposit showing good faith.

Broker

Licensed person who can operate independently.

Sales Agent

Licensed person sponsored by a broker.

Material Fact

Fact affecting value or desirability.

Lead-Based Paint

Federal disclosure required for homes built before $1978$.

Mortgage

Security instrument in many states.

Deed of Trust

Security instrument commonly used in Texas.

Promissory Note

Borrower's promise to repay.

Amortization

Gradual repayment of debt.

Escrow

Funds held by a third party.

FHA Loan

Government-insured loan.

VA Loan

Loan guaranteed for eligible veterans.

TREC

Texas Real Estate Commission.

TRELA

Texas Real Estate License Act.

Intermediary

Texas form of dual agency.

Statute of Frauds

Real estate contracts must be in writing.

Fair Housing Act

Prohibits discrimination in housing.