Texas Real Estate State Practice Exam

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Prepare for the Texas Real Estate State Exam with comprehensive study materials. Engage in multiple choice questions and gain insights with in-depth explanations and examples. Ace your exam confidently!

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Which theory refers to the first landowner claiming riparian rights exclusive rights?

Prior Appropriation Theory
Market Value Theory
CMA Comparative Market Analysis
Income Approach Theory

The correct answer is: Prior Appropriation Theory

Prior Appropriation Theory is the correct answer because it is a legal concept that dictates that the first person to use water from a natural source for a beneficial purpose has the right to continue using that water as long as the use is not considered wasteful. This theory is commonly used in Western states where water is scarce and highly valued. The other options, Market Value Theory, CMA Comparative Market Analysis, and Income Approach Theory, are all related to real estate valuation and have no connection to the concept of riparian rights. Market Value Theory is a fundamental concept in real estate appraisal, stating that the value of a property is based on what a willing buyer would pay a willing seller on the open market. CMA Comparative Market Analysis is a method used by real estate agents to determine the value of a property by comparing it to similar properties in the same area. Income Approach Theory is a valuation method used for income-producing properties, where the value is based on the potential income it can generate.