Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

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What happens to the land at the end of a leasehold agreement?

It can be sold
It remains with the tenant
It reverts back to the lessor
It becomes government property

The correct answer is: It reverts back to the lessor

At the end of a leasehold agreement, the land typically reverts back to the lessor, which is the property owner who leased the land to the tenant. This means that once the lease term has concluded, the tenant must vacate the property and return possession to the lessor. The leasehold is a temporary arrangement; therefore, the rights that the tenant had during the lease do not extend beyond its expiration. Upon termination of the lease, the land does not transfer to the tenant or become available for sale; rather, it remains under the ownership of the lessor who can then choose to lease it again or use it as they see fit.