Texas Real Estate Glossary
Unlock standard real estate jargon, Texas legislative phrases, and contract terms. Understanding these exact, state-specific definitions is crucial for answering scenario-based questions on the licensing exam.
AgencyDetails →
A legal relationship created when a principal authorizes an agent to act on their behalf in business transactions with third parties.
AppraisalDetails →
An unbiased, professionally developed estimate of a property's market value conducted by a licensed appraiser.
Bilateral ContractDetails →
A two-sided legal agreement where both contracting parties exchange mutual promises to perform specific obligations.
BlockbustingDetails →
The illegal practice of inducing homeowners to sell their properties by claiming that minority groups are moving into the neighborhood.
BrokerDetails →
An individual or entity licensed by TREC to conduct real estate brokerage activities, who is responsible for the professional actions of all sponsored sales agents.
ComminglingDetails →
The illegal act of mixing a client's trust funds or earnest money with a broker's personal or business operating accounts.
Community PropertyDetails →
A system of co-ownership in Texas where all property acquired by either spouse during a marriage is owned jointly, regardless of whose name is on the title.
DeedDetails →
A written legal document that conveys title to, or an interest in, real property from a grantor to a grantee.
DTPADetails →
Deceptive Trade Practices Act. A Texas consumer protection statute designed to protect public buyers from false, misleading, or deceptive business practices.
Dual AgencyDetails →
An illegal practice in Texas where a single broker represents both the buyer and the seller in a transaction without acting as a licensed intermediary.
Earnest MoneyDetails →
A good-faith financial deposit made by the buyer upon executing a contract to demonstrate their sincerity in completing the transaction.
EasementDetails →
The non-possessory right to use another person's real property for a specific, limited purpose.
EncroachmentDetails →
The unauthorized physical intrusion of an improvement, structure, or object onto another person's real property.
EncumbranceDetails →
Any claim, lien, charge, or liability attached to and binding on real property that may lessen its value but does not prevent transfer of title.
EscrowDetails →
A financial arrangement where a neutral third party holds funds or assets on behalf of the contracting parties until all contractual obligations are met.
Executory ContractDetails →
A contract that is in the process of being completed, where one or more agreed-upon obligations remain unperformed by the parties.
Fee SimpleDetails →
The highest and most complete form of real property ownership, giving the holder absolute rights of possession, transfer, and inheritance.
FiduciaryDetails →
A relationship of trust, confidence, and responsibility where an agent is legally obligated to place their client's interests above all others.
General AgencyDetails →
A relationship where an agent is authorized to perform a broad, ongoing range of transactions associated with a specific business or operation.
HomesteadDetails →
A legal status under the Texas Constitution that shields a primary residence from forced sale by most general creditors.
IABSDetails →
Information About Brokerage Services. A mandatory written disclosure in Texas explaining how real estate representation and agency work.
IntermediaryDetails →
A statutory process in Texas where a single broker represents both the buyer and the seller in a real estate transaction with written consent.
LienDetails →
A legal claim or encumbrance on a property that secures the payment of a debt or the performance of an obligation.
Lot and BlockDetails →
A system of land legal description that references a recorded subdivision plat map filed in county public records.
Metes and BoundsDetails →
A traditional land legal description system that outlines the boundaries of a parcel of land using terminal points, angles, and physical markers.
Non-HomogeneityDetails →
A physical characteristic of land stating that no two parcels of real estate are identical, making each property unique.
Option PeriodDetails →
A designated timeframe during which a buyer has the unrestricted right to terminate a real estate sales contract by paying an agreed-upon fee.
Promulgated FormDetails →
Standardized contract templates and riders drafted and legally mandated by TREC for use by licensed brokers and sales agents.
ProrationDetails →
The mathematical division and allocation of ongoing property expenses, such as taxes or association dues, between buyer and seller at closing.
PuffingDetails →
Subjective, non-factual exaggeration of a property's benefits or features used in marketing, which is legal as long as it does not cross into misrepresentation.
Recovery Trust AccountDetails →
A special fund maintained by TREC to reimburse consumers who suffer monetary damages due to the fraudulent or deceptive actions of real estate license holders.
RedliningDetails →
The illegal practice by lending institutions of refusing to make loans or restricting lending services in specific geographic areas based on demographics.
Right of SurvivorshipDetails →
A characteristic of joint tenancy or community property where, upon the death of one co-owner, their ownership share automatically passes to the surviving owner.
Sales AgentDetails →
A licensed individual who is sponsored by an active licensed broker and is authorized to conduct real estate transactions on behalf of that broker.
Statute of FraudsDetails →
A state law requiring certain contracts, including those conveying an interest in real property, to be in writing and signed to be legally enforceable.
Statutory LienDetails →
An involuntary lien created by operations of written state laws or statutes, independent of any contract or agreement.
SteeringDetails →
The illegal practice of channeling or directing home seekers toward or away from specific neighborhoods based on their protected class.
SubagencyDetails →
An agency relationship where a broker from a different firm represents the seller through the listing broker, with no agent representing the buyer.
TitleDetails →
The legal concept of ownership, encompassing all rights of possession, use, control, enjoyment, and disposition of real property.
TRECDetails →
Texas Real Estate Commission. The state agency responsible for licensing, regulating, and enforcing real estate license laws in Texas.
TRELADetails →
Texas Real Estate License Act. The comprehensive state law that defines the legal framework for licensing and real estate practice in Texas.
Unilateral ContractDetails →
A one-sided legal contract where one party makes an express promise to induce another party to perform an action.
Browse by Licensing Exam Topic
Grouped to match the structural curriculum of the Texas Real Estate Exam outline.
Contracts & Agreements
6 TermsBilateral Contract→
A two-sided legal agreement where both contracting parties exchange mutual promises to perform specific obligations.
Earnest Money→
A good-faith financial deposit made by the buyer upon executing a contract to demonstrate their sincerity in completing the transaction.
Escrow→
A financial arrangement where a neutral third party holds funds or assets on behalf of the contracting parties until all contractual obligations are met.
Executory Contract→
A contract that is in the process of being completed, where one or more agreed-upon obligations remain unperformed by the parties.
Statute of Frauds→
A state law requiring certain contracts, including those conveying an interest in real property, to be in writing and signed to be legally enforceable.
Unilateral Contract→
A one-sided legal contract where one party makes an express promise to induce another party to perform an action.
Fair Housing, Ethics & Laws
3 TermsBlockbusting→
The illegal practice of inducing homeowners to sell their properties by claiming that minority groups are moving into the neighborhood.
Redlining→
The illegal practice by lending institutions of refusing to make loans or restricting lending services in specific geographic areas based on demographics.
Steering→
The illegal practice of channeling or directing home seekers toward or away from specific neighborhoods based on their protected class.
Promulgated Contract Forms
2 TermsProperty Ownership & Rights
12 TermsCommunity Property→
A system of co-ownership in Texas where all property acquired by either spouse during a marriage is owned jointly, regardless of whose name is on the title.
Easement→
The non-possessory right to use another person's real property for a specific, limited purpose.
Encroachment→
The unauthorized physical intrusion of an improvement, structure, or object onto another person's real property.
Encumbrance→
Any claim, lien, charge, or liability attached to and binding on real property that may lessen its value but does not prevent transfer of title.
Fee Simple→
The highest and most complete form of real property ownership, giving the holder absolute rights of possession, transfer, and inheritance.
Homestead→
A legal status under the Texas Constitution that shields a primary residence from forced sale by most general creditors.
Lien→
A legal claim or encumbrance on a property that secures the payment of a debt or the performance of an obligation.
Lot and Block→
A system of land legal description that references a recorded subdivision plat map filed in county public records.
Metes and Bounds→
A traditional land legal description system that outlines the boundaries of a parcel of land using terminal points, angles, and physical markers.
Non-Homogeneity→
A physical characteristic of land stating that no two parcels of real estate are identical, making each property unique.
Right of Survivorship→
A characteristic of joint tenancy or community property where, upon the death of one co-owner, their ownership share automatically passes to the surviving owner.
Statutory Lien→
An involuntary lien created by operations of written state laws or statutes, independent of any contract or agreement.
Real Estate Math Formulas
1 TermTexas Law of Agency
7 TermsAgency→
A legal relationship created when a principal authorizes an agent to act on their behalf in business transactions with third parties.
Dual Agency→
An illegal practice in Texas where a single broker represents both the buyer and the seller in a transaction without acting as a licensed intermediary.
Fiduciary→
A relationship of trust, confidence, and responsibility where an agent is legally obligated to place their client's interests above all others.
General Agency→
A relationship where an agent is authorized to perform a broad, ongoing range of transactions associated with a specific business or operation.
IABS→
Information About Brokerage Services. A mandatory written disclosure in Texas explaining how real estate representation and agency work.
Intermediary→
A statutory process in Texas where a single broker represents both the buyer and the seller in a real estate transaction with written consent.
Subagency→
An agency relationship where a broker from a different firm represents the seller through the listing broker, with no agent representing the buyer.
Texas License Law & TREC
5 TermsBroker→
An individual or entity licensed by TREC to conduct real estate brokerage activities, who is responsible for the professional actions of all sponsored sales agents.
Commingling→
The illegal act of mixing a client's trust funds or earnest money with a broker's personal or business operating accounts.
Recovery Trust Account→
A special fund maintained by TREC to reimburse consumers who suffer monetary damages due to the fraudulent or deceptive actions of real estate license holders.
Sales Agent→
A licensed individual who is sponsored by an active licensed broker and is authorized to conduct real estate transactions on behalf of that broker.
TREC→
Texas Real Estate Commission. The state agency responsible for licensing, regulating, and enforcing real estate license laws in Texas.
Titles, Deeds & Records
2 TermsTRELA Statutory Code
3 TermsDTPA→
Deceptive Trade Practices Act. A Texas consumer protection statute designed to protect public buyers from false, misleading, or deceptive business practices.
Puffing→
Subjective, non-factual exaggeration of a property's benefits or features used in marketing, which is legal as long as it does not cross into misrepresentation.
TRELA→
Texas Real Estate License Act. The comprehensive state law that defines the legal framework for licensing and real estate practice in Texas.
Valuation & Market Appraisal
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