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 is a property occupied by its owner as a permanent residence called?

Rental Property
Investment Property
Homestead
Vacant Property

The correct answer is: Homestead

A property occupied by its owner as a permanent residence is referred to as a homestead. The term "homestead" encompasses not only the physical residence but also signifies a space where the owner considers their principal home. This designation often comes with various legal protections, particularly in terms of property taxes and creditors, depending on state laws. The concept of a homestead often allows owners to benefit from reduced property tax rates or exemptions and provides a level of security against debtors, making it a significant aspect of property ownership. Understanding this term is crucial for anyone in the real estate field, as it reflects the legal and financial implications of residing in a property that is claimed as one's permanent residence.