Texas Real Estate State Practice Exam

What is a license in real estate terminology?

1. Permission to do a particular act, like going fishing

2. Structure or improvements overlapping onto another's property

3. Belongs to a person or corporation, like a utility easement

4. Limited use or enjoyment of another's land

The correct answer is: Permission to do a particular act, like going fishing

In real estate terminology, a license is essentially a type of permission that allows an individual or entity to engage in a specific act on another person's property. This concept aligns with the idea of granting permission for activities that would otherwise be considered trespassing. For example, a homeowner might give a neighbor a license to park a car in their driveway or to walk across their property to access a public beach. This concept of license distinguishes it from other interests in real estate, such as easements or property rights. It does not confer any ownership interest or ongoing rights in the land itself; it is merely temporary and can often be revoked at any time by the property owner. Understanding this clarifies the nature of licenses in real estate as a limited and revocable privilege rather than an enduring right or claim to the property.