Texas Real Estate Sales Agent — All Questions

A landlocked parcel with no access to a public road may be granted a right of passage over a neighboring parcel through an easement by:

• a.necessity✓
• b.estoppel based on a spoken promise that was later denied
• c.prescription, acquired through open and hostile use over many years
• d.express grant that is recorded in a written deed only

An easement by necessity arises when a parcel would otherwise be landlocked, typically where a single tract was divided leaving one part without access. The law implies the easement so the land can be used.

An easement acquired by using another's land openly, continuously, and without permission for the period set by law is an easement by:

• a.condemnation that is exercised by a public utility company
• b.express reservation that is stated in the deed itself
• c.prescription✓
• d.necessity, which is created when a parcel becomes landlocked

A prescriptive easement is gained through open, notorious, continuous, and hostile (unpermitted) use for the statutory period. It creates a right to use, but not to own, another's land.

Permission to use another's land that is personal, revocable, and does not create an interest in the land is a:

• a.license✓
• b.fee simple determinable estate that may end on a stated event
• c.easement appurtenant that runs with the land to new owners
• d.profit that grants the right to remove resources from the land

A license is mere personal permission to do something on another's land and can be revoked at any time. Unlike an easement, it does not create a lasting interest in the land and does not transfer with the property.

In an easement appurtenant, the parcel that is burdened by and subject to the easement is the:

• a.life estate that is measured by the current owner's life
• b.leasehold estate that is held by a tenant
• c.dominant estate that benefits from the easement
• d.servient estate✓

The servient estate is the parcel burdened by the easement, while the dominant estate is the parcel that benefits from it. An easement appurtenant runs with the land and passes to future owners of both parcels.

The federal Fair Housing Act, as amended, protects seven classes. Which set correctly lists those protected classes?

• a.Sexual orientation, veteran status, and citizenship of the resident unless the parties specifically negotiate a written exception beforehand
• b.Race, color, religion, national origin, sex, disability, and familial status✓
• c.Race, color, religion, age, and marital status of the applicant
• d.Income level, occupation, and political affiliation of the buyer

The federal Fair Housing Act protects race, color, religion, national origin, sex, disability, and familial status. Some state and local laws add further protected classes, and requirements can change over time.

The Fair Housing Act's protection of 'familial status' may be lawfully set aside for:

• a.qualified housing for older persons, such as 55-and-older communities meeting HUD rules✓
• b.duplexes that happen to be located in a resort area
• c.any apartment complex that simply prefers to rent to adults as a matter of long-standing real estate custom and common-law tradition
• d.any single-family home that is sold directly by its owner

Housing that qualifies as 'housing for older persons' under HUD standards (for example, 55-and-older communities) may lawfully restrict families with children. Outside that exemption, discrimination based on familial status is prohibited.

Under fair housing law, a landlord generally must permit a tenant with a disability to make reasonable:

• a.requests to move in without paying any security deposit at all
• b.modifications to the unit, usually at the tenant's own expense✓
• c.reductions in the monthly rent to offset the tenant's medical costs
• d.demands that the landlord buy and install medical equipment for the tenant

Fair housing law requires landlords to allow reasonable physical modifications (generally at the tenant's expense) and to make reasonable accommodations in rules or policies. It does not require rent discounts or free medical equipment.

Which statement in a property advertisement would most likely violate fair housing law?

• a.'Ideal for a Christian family; no children preferred'✓
• b.'Recently renovated kitchen featuring brand-new stainless appliances'
• c.'Great starter home with a large, fully fenced backyard for pets'
• d.'Spacious three-bedroom home located near parks and public schools'

Advertising that expresses a preference or limitation based on religion or familial status (children) violates fair housing law. Describing the property's features is permissible; targeting or excluding protected classes is not.

The Texas Fair Housing Act is best described as a state law that:

• a.adds occupation and income level as protected classes statewide
• b.generally mirrors the federal Fair Housing Act's protected classes and prohibitions✓
• c.replaces and overrides the federal Fair Housing Act inside Texas
• d.applies only to commercial and industrial properties, not homes

The Texas Fair Housing Act closely tracks the federal Fair Housing Act, covering the same core protected classes and prohibited practices. It is enforced by the Texas Workforce Commission's civil rights division.

The Americans with Disabilities Act (ADA) differs from the Fair Housing Act mainly because the ADA focuses on:

• a.only single-family residences that are owner-occupied
• b.accessibility in places of public accommodation and commercial facilities✓
• c.prohibiting discrimination in mortgage lending decisions by banks regardless of the particular county in which the property is located
• d.setting the maximum rent landlords may charge disabled tenants

The ADA addresses access to public accommodations and commercial facilities, such as offices, stores, and hotels. The Fair Housing Act, by contrast, governs discrimination in residential housing, including reasonable accommodations for tenants.

A property owner who wants to build slightly closer to the lot line than the setback allows would typically seek a:

• a.nonconforming use permit that legalizes an already existing violation
• b.rezoning of the entire surrounding neighborhood to a new district
• c.variance✓
• d.restrictive covenant to be recorded against the owner's own property

A variance grants permission to deviate from a specific zoning requirement, such as a setback, because of a hardship unique to the property. It does not change the zoning of the area, only relaxes one requirement.

A lawful use that existed before a new zoning ordinance took effect, and is now allowed to continue, is a:

• a.variance that was granted for planned future construction
• b.spot zoning that benefits only one favored parcel
• c.conditional use permit that requires annual renewal
• d.nonconforming use (a grandfathered use)✓

A nonconforming use lawfully predates the current zoning and is 'grandfathered' so it may continue. Expansion or rebuilding of the use is often restricted, and the right can be lost if the use is abandoned.

A church or school allowed to operate within a residential zone through a special approval process holds a:

• a.nonconforming use that predated the zoning ordinance
• b.special (conditional) use permit✓
• c.deed restriction that was imposed by the original developer
• d.variance that merely excuses a dimensional requirement

A special or conditional use permit allows a use that the zoning ordinance permits only with specific approval, such as a school or place of worship in a residential zone. It is granted subject to conditions protecting the neighborhood.

Rezoning a single parcel in a way that is inconsistent with the surrounding area, often to benefit one owner, is criticized as:

• a.spot zoning✓
• b.a valid special use permit issued under the ordinance
• c.an easement by necessity created for landlocked land
• d.a legitimate variance based on individual hardship

Spot zoning singles out one parcel for treatment different from the surrounding area, usually benefiting the owner rather than the general public. Courts often strike it down when it is not part of a comprehensive plan.

A private deed restriction limits building height to two stories, but the zoning ordinance allows three. Which controls?

• a.The owner may freely choose whichever limit is more convenient
• b.Neither rule applies because the two limits cancel each other out
• c.The zoning ordinance always overrides any private deed restriction
• d.The more restrictive limit generally controls, so the two-story limit applies✓

When private deed restrictions and public zoning both apply, the more restrictive of the two normally governs. Here the two-story deed restriction is stricter than the three-story zoning, so it controls.

Acquiring title to real property by occupying it openly, exclusively, and continuously for the statutory period, without the owner's permission, is called:

• a.escheat to the state after the owner dies without heirs
• b.eminent domain that is exercised by the government
• c.a prescriptive easement that grants only a right to use
• d.adverse possession✓

Adverse possession can transfer ownership to a possessor whose use is open, notorious, exclusive, continuous, and hostile for the statutory period. Texas has several limitation periods (such as 3, 5, 10, and 25 years) with differing requirements.

The four public (governmental) limitations on private ownership are often remembered by the acronym 'PETE.' They are:

• a.possession, encumbrance, transfer, and enjoyment of land
• b.plat, entitlement, title, and encroachment of boundaries
• c.police power, eminent domain, taxation, and escheat✓
• d.prescription, easement, tenancy, and estate interests

PETE stands for police power (regulation such as zoning), eminent domain (taking for public use with compensation), taxation, and escheat (property passing to the state when an owner dies with no heirs). These are the government's inherent limits on private ownership.

Property taxes in Texas are 'ad valorem,' which means they are based on:

• a.the total square footage of the living area only
• b.the assessed value of the property✓
• c.a flat fee that is set equally for every property in the county
• d.the number of people who occupy the home each year

Ad valorem means 'according to value,' so the tax is based on the property's assessed value. Because Texas has no state personal income tax, local governments rely heavily on ad valorem property taxes.

For a Texas residence homestead, the appraised value used for property taxes generally may not increase more than:

• a.any amount, because there is no cap on annual increases
• b.10 percent per year, plus the value of any new improvements✓
• c.5 percent in any single tax year, with no exceptions allowed
• d.25 percent measured over every two-year period

Texas caps the annual increase in a homestead's appraised value for taxation at 10 percent per year (excluding the value of new improvements). This 'homestead cap' does not apply to non-homestead property.

Shelving and display counters a tenant installs to run a retail business, which the tenant may remove before the lease ends, are:

• a.emblements that are treated the same as annually planted crops
• b.trade fixtures that remain the tenant's personal property✓
• c.appurtenances that belong to the landlord after installation
• d.permanent fixtures that automatically transfer with the real estate

Trade fixtures are items a business tenant attaches to conduct business, and the tenant may generally remove them before the lease ends, repairing any damage. They are an exception to the usual rule that attached items become part of the realty.

Which of the following BEST defines an encumbrance?

• a.The physical act of recording a deed at the county courthouse
• b.A government grant transferring public land to a private citizen
• c.A claim, lien, or restriction held by someone other than the owner that affects the property✓
• d.The complete and fully unrestricted ownership of a parcel of land because the governing statute is generally understood to require that result

An encumbrance is any claim, lien, charge, or restriction on property held by a party other than the owner, such as a mortgage, easement, or deed restriction. Encumbrances can affect value or use but do not necessarily prevent transfer.

Ownership of real property by one individual or entity alone, with no co-owners, is called ownership in:

• a.tenancy in common that is held by multiple co-owners
• b.joint tenancy that is shared with a right of survivorship
• c.severalty✓
• d.community property that is shared between two spouses

Ownership in severalty means title is held by a single person or entity, 'severed' from all others. It is distinct from the various forms of co-ownership such as joint tenancy and tenancy in common.