Chapter 1
Property Rights and Interests
Course: Texas Real Estate Exam Prep
Subject: Texas State Salesperson Exam Prep
Chapter: Property Rights And Interests Of Texas Real Estate Salesperson Exam Prep
Core Concept
An "estate in land" defines the degree, nature, duration, and extent of a person's interest in real property. Not all ownership is equal.
Freehold Estates (Ownership Interests)
- Fee Simple Estate (Fee Simple Absolute)
Definition: The highest form of ownership interest in real property with unlimited duration
Characteristics:
- Unlimited duration (extends forever)
- Freely transferable during life or at death
- Subject only to governmental powers (taxation, eminent domain, police power, escheat)
- Most common form of ownership in Texas
How Created: Deed states "to John Smith" or "to John Smith and his heirs"
Texas Real-Life Application: A family purchases a home in Plano using a traditional mortgage. They receive fee simple title subject only to the mortgage lien. Once the mortgage is paid, they have complete, unencumbered fee simple ownership they can pass to their children.