unit 10

Question 1

The charge on real estate to raise funds to meet the public needs of a government is

Answer 1

taxation.

Question 2

A Texas Workforce Commission (TWC) wage lien

Answer 2

attaches to all real and personal property, with the exception of homestead property, belonging to an employer who owes back wages.

Question 3

Tax appraisals in Texas reflect which of the following?

Answer 3

One hundred percent of a property’s market value

Question 4

A father sells a lakeside property to his daughter. He puts an easement in the deed that gives him the right to enter the property to fish. This is an easement by

Answer 4

express reservation.

Question 5

Which provides for ownership of real estate to revert to the state when an owner dies and leaves no heirs and no will?

Answer 5

Escheat

Question 6

After a tax foreclosure sale, a deed is given to the successful bidder. Which of the following is a condition of that deed?

Answer 6

The deed conveys all right, title, and interest of the defaulted taxpayer, including the right to use and possess the property.

Question 7

A mortgage lien on a home is

Answer 7

a voluntary specific lien.

Question 8

Texas law permits the taking of private property for all conditionsEXCEPT

Answer 8

economic development and enhancement of tax revenue.

Question 9

A federal tax lien is

Answer 9

a statutory involuntary lien.

Question 10

In most cases, the homestead is exempt from forced sale by creditors for payment of debts. However, how many lien rights have been determined to be foreclosable?

Answer 10

9

Question 11

If a property owner claims that errors were made in the appraisal of a property, which doesNOToccur during the protest period phase?

Answer 11

A property owner must present an independent appraisal to the appraisal review board.

Question 12

The purpose of which of the following is to provide water, sewer, drainage, and flood-control-protection facilities for properties located outside the boundaries of a town or city?

Answer 12

A utility district

Question 13

The king owns the land and individuals are merely tenants under

Answer 13

the feudal system.

Question 14

Texans may drill for and pump as much groundwater as they choose as long as they do not waste the water or damage a neighbor’s property. But what if pumping water leads to subsidence (sinking) of a neighboring property or even causes a sinkhole to open?

Answer 14

Landowners may be found liable for negligent pumping of ground water.

Question 15

Ad valorem taxes become a lien on a property on

Answer 15

January 1 of the tax year.

Question 16

Which of the following statements isTRUEregarding littoral rights?

Answer 16

They are attached to the land and cannot be retained when the property is sold.
They refer to water rights of owners of land that borders on lakes.
They refer to water rights of owners of land that borders on oceans.

Question 17

The primary source of income from the land doesNOThave to be farming to qualify for which method of rural land valuation?

Answer 17

Open-space valuation

Question 18

If a property owner doesNOTpay a carpenter for work or materials provided, the carpenter is protected through

Answer 18

a mechanic’s lien.

Question 19

What are the primary ways that local governments can control the use of property?

Answer 19

Zoning and building codes

Question 20

If homeowners loses their appeal to the appraisal review board, they

Answer 20

may further appeal the decision to the State Office of Administrative Hearings.

Question 21

Owners with littoral rights own the land to

Answer 21

the mean vegetation line.

Question 22

A vendor’s lien is a claim on real estate

Answer 22

by the seller of the property.

Question 23

Which statement doesNOTapply to homestead property in Texas?

Answer 23

A family can have several homestead properties at one time.

Question 24

If the defeasible fee estate doesNOTautomatically end on the occurrence or nonoccurrence of a stipulated condition, the type of estate is

Answer 24

a fee simple subject to a condition subsequent.

Question 25

Freehold estates that cannot be left to the owner’s heirs are

Answer 25

not inheritable.

Question 26

Which transfers with the title of the property?

Answer 26

Appurtenant easements

Question 27

An income tax lien is what kind of lien?

Answer 27

General, involuntary

Question 28

Is it possible for a delinquent taxpayer to recover any funds once a property is sold at auction?

Answer 28

Yes, money raised at auction pays off delinquent taxes and fees, but any excess may be returned to the delinquent owner.

Question 29

Which of the following is a decree issued by a court to settle the rights and liabilities of parties to a lawsuit?

Answer 29

Judgment

Question 30

If a homeowner does not pay the ad valorem taxes on his residence after they are billed, the tax collector

Answer 30

must take the delinquent taxpayer to court to foreclose on the tax lien.

Question 31

A couple with three children owns an urban homestead in Texas. When will the homestead protections end?

Answer 31

When the youngest child reaches 18 years of age, if both parents are deceased

Question 32

If a landowner grants a dog breeder a piece of property, but only on the condition that the breeder raise only farm dogs—but who is then found be raising toy poodles—can the grantor take back the property?

Answer 32

Yes, but the grantor would have to go to court to retrieve the title.

Question 33

Are home equity loans foreclosable again Texas homesteads?

Answer 33

Home equity loans, regardless of purpose, are foreclosable.

Question 34

A person with a large home and surrounding property creates a determinable fee estate so long as a specific church uses it for the church’s services. What happens to the property if the church goes out of business?

Answer 34

The house and surrounding property reverts to the original owner or heirs of the original owner.

Question 35

Groundwater is a precious commodity in Texas, and even though landowners are allowed to pump as much as they’d like—as long as they don’t waste it—does that mean that there are no controls?

Answer 35

Groundwater conservation districts may require landowners to report how much water they pump and regulate the spacing of wells.

Question 36

If a landowner grants an easement to a rancher for the purpose of grazing cattle, but the rancher then retires and sells off the herd, what happens to the easement?

Answer 36

The easement is abandoned when the rancher retires and no longer has cattle.

Question 37

A claim against a seller’s property in the event that the seller fails to deliver title is which of the following?

Answer 37

Vendee’s lien

Question 38

If gold is discovered on a rancher’s property and he decides to sell mineral rights to a mining company, can he later deny the miners access to the claim when he realizes its value unless they pay a toll to cross his property?

Answer 38

The mining company has a right to access through an easement by implication.

Question 39

If a landowner has a navigable stream cutting across his property, does he own the stream?

Answer 39

No, land adjoining navigable streams usually is owned to the mean vegetation line, and the state owns the remaining land.

Question 40

A homestead may suffer forced sale for nonpayment of loans from which the proceeds were used to settle property claims in cases of death or

Answer 40

divorce.

Question 41

If a property has an involuntary lien against it, the lien

Answer 41

can remain and the purchaser will buy the property subject to the lien.

Question 42

If Center City levies a special assessment against residents in a new subdivision for the extension of water lines into the new area, it is what kind of tax?

Answer 42

Specific, involuntary

Question 43

If the owner of a lot in a new subdivision announces he is going to build a modern architecture home on the property while all the other homes in the division are Spanish style, can he be stopped?

Answer 43

Yes he can be stopped if the subdivision has a deed restriction requiring all homes to be of Spanish architecture.

Question 44

Do homeowners always want the lowest possible appraisal?

Answer 44

No, if a homeowner is preparing to sell the property, a higher appraisal would help justify a higher listing price.

Question 45

Taxes levied on real estate that require property owners to pay for improvements that benefit the real estate they own are which of the following?

Answer 45

Special assessments

Question 46

Rights granted to owners of land located along the course of a river or stream and patented into private ownership before July 1, 1895, are which of the following?

Answer 46

Riparian rights

Question 47

Proceeds from the sale of the homestead are exempt from creditors for six months. Why?

Answer 47

To provide the family time to purchase a new property

Question 48

A mechanic’s lien placed on a property by a contractor is

Answer 48

a specific lien.

Question 49

The contract for a valid lien for labor or material on a homestead improvement mustNOTbe signed until how many days after the loan application?

Answer 49

5

Question 50

If a landowner has a nonnavigable stream cutting across his property, does he own the stream?

Answer 50

Yes, the legal theory is that the landowner owns to the middle of the stream, but because he owns the land on both sides, he essentially owns the stream.

Question 51

Which isNOTa step in the adoption of a tax rate?

Answer 51

The tax rate is computed for all taxing units by adding together all monies needed by all taxing district entities and dividing that total by the total appraisal of all real and personal property in the appraisal district.

Question 52

For a government or public entity to exercise the right of eminent domain, the proposed use must be declared by the court to be which of the following?

Answer 52

Public

Question 53

A bank agrees to make a home loan but insists on a written agreement between the bank and other prior lienholders to grant first-lien position to the bank, lowering the priority of other liens. What does the bank require?

Answer 53

A subordination agreement

Question 54

What kind of redemption rights allow the owner of a tax-delinquent property to redeem the property before the tax sale?

Answer 54

Equitable

Question 55

Alice gives Betty a life estate. Betty is the life tenant of the property, and the life estate will continue as long as Betty is alive. What kind of life estate is this?

Answer 55

Ordinary

Question 56

Which is a notice in the public records of a pending lawsuit involving real estate?

Answer 56

Lis pendens

Question 57

By what legal procedure can a county or a municipality take control of privately owned land and deliver it to a private developer?

Answer 57

The use of eminent domain for private use is illegal in Texas.

Question 58

Which kind of water is considered a public highway in which the public has an easement, or right, to travel?

Answer 58

Navigable

Question 59

A rural property that is in a utility district is going under contract. Which of the following describes the utility district tax?

Answer 59

The seller must furnish a statutory notice about the utility district tax before final execution of the contract.

Question 60

After paying the delinquent tax, interest, penalties, and attorney’s fees, the winner at a tax sale receives a deed from

Answer 60

the sheriff.

Question 61

Mechanics’ and materialmen’s liens take priority from the date

Answer 61

the work was begun or first materials delivered.

Question 62

Under what kind of interest does the property return to the heirs of the original owner who has died?

Answer 62

Reversionary

Question 63

When a special assessment is calculated, each parcel of real estate that will benefit from the improvement is

Answer 63

not necessarily assessed the same amount.

Question 64

What happens to delinquent properties if there are no bidders at the auction?

Answer 64

The property is “struck off” or sold to the taxing authority seeking delinquent taxes and may be used for whatever purpose it sees fit.

Question 65

A homestead may suffer forced sale for payment of claims for the costs of improvements to the property filed by materialmen and

Answer 65

mechanics.