QUICK ANSWER
Zoning is a municipality's use of police power to regulate land through districts and rules for use, height, setbacks, and density. An ordinary valid regulation does not require payment merely because it limits use, but a regulation that goes far enough can become a compensable taking. Texas municipalities zone under Local Government Code Chapter 211; counties lack general zoning power unless a statute grants specific authority. Eminent domain takes property for public use and requires adequate compensation.
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This guide explains zoning, land use, and police power for the Texas sales agent exam. It is educational content, not legal advice. Zoning rules, variances, and eminent domain outcomes in a real matter depend on the local ordinance and current law, so confirm the primary sources below and consult the city, county, or a licensed attorney before you rely on any point.
Land use is where private ownership meets government power. The January 2026 Pearson VUE outline assigns three scored questions to the complete public-and-private land-use-controls subtopic, which includes police power, eminent domain, taxation, escheat, zoning, deed restrictions, easements, licenses, and encroachments. This guide focuses on the zoning and government-power portion and adds current Texas context.
What is police power?
Police power is the government's authority to regulate private activity and property to protect public health, safety, morals, and general welfare. Zoning, building codes, and subdivision rules are common examples. An ordinary valid regulation generally does not require compensation merely because it limits an owner's choices. That is not an absolute rule: if regulation crosses the constitutional line into a taking, compensation may be required.
Police power is the constitutional basis for zoning. It is the government's authority to make rules that protect health, safety, morals, and the general welfare of the community. When a city says a block is residential only, or sets a building height limit, it is exercising police power.
The key contrast for the exam is with eminent domain. The federal Fifth Amendment calls the required payment for a taking just compensation; Article I, Section 17 of the Texas Constitution says adequate compensation, and Texas questions may use that Texas term. Both are government powers over private land, along with taxation and escheat, and they limit the bundle of rights.
| Exam question | Police power | Eminent domain |
|---|---|---|
| What happens? | Government regulates property use | Government takes or damages property for public use |
| Typical example | Zoning, building code, health regulation | Land or an easement acquired for a road or utility |
| Payment rule | Ordinarily no compensation for a valid regulation; a compensable regulatory taking is the exception | Adequate compensation is required |
| Process term | Regulation or enforcement | Condemnation |
Zoning: how it works
Zoning divides a community into districts, such as residential, commercial, industrial, and agricultural, and sets rules for each on use, lot size, building height, setbacks, and density. Under Texas Local Government Code Section 211.004(a), zoning regulations must be adopted in accordance with a comprehensive plan. Its goal is to separate incompatible uses and guide orderly growth.
Zoning splits a city into districts and sets rules for each one. The classic categories are residential, commercial, industrial, and agricultural, often with subtypes like single-family versus multifamily residential.
Texas grants zoning power by enumeration
In Texas the list is not general principle, it is an enumerated grant. Local Government Code Section 211.003(a) lets a municipality regulate:
- Height, number of stories, and size of buildings and other structures.
- The percentage of a lot that may be occupied.
- The size of yards, courts, and other open spaces, which is where setback rules live.
- Population density.
- The location and use of buildings and land for business, industrial, residential, or other purposes.
The narrower item on that list
One item on that list is narrower than most study guides admit. Under Section 211.003(c), only a home-rule municipality may also regulate the bulk of buildings. A general-law city zoning under Chapter 211 does not get bulk regulation from Subsection (a).
Zoning must follow a comprehensive plan
Zoning is not merely supposed to follow a comprehensive plan. Section 211.004(a) says zoning regulations must be adopted in accordance with a comprehensive plan. They must also be designed to serve at least one of seven listed purposes. Those include lessening street congestion, securing safety from fire and panic, providing adequate light and air, preventing overcrowding of land, and facilitating transportation, water, sewers, schools, and parks. Zoning works alongside building codes and, where local ordinance requires one, a certificate of occupancy confirming that a building or use may be occupied.
Zoning relief and exceptions
Zoning is not absolute. A variance lets an owner depart from a rule when the statutory hardship test is met. In Texas, granting one requires a 75 percent concurring vote of the board of adjustment under Local Government Code Section 211.009(c). A special exception is a matter the ordinance sends to that board. A specific or conditional use permit authorizes a use under the local ordinance, with the decision-maker set by that ordinance. A lawful nonconforming use predates the change. Parcel-specific rezoning may be challenged as impermissible spot zoning, but the label alone does not make every single-parcel change invalid.
Rigid zoning would be unfair, so the law builds in safety valves. These terms are heavily tested.
| Tool | What it does | Who decides |
|---|---|---|
| Variance | Permission to deviate from a rule, such as a setback, because strict application causes an unnecessary hardship | Board of adjustment |
| Special exception | A departure the zoning ordinance itself tells the board to hear and decide | Board of adjustment |
| Specific or conditional use permit | Approval for a use the district allows only after review | Decision-maker named in the local ordinance |
| Nonconforming use | A use that was lawful before the zoning changed, allowed to continue as grandfathered | Arises by operation of law |
| Alleged spot zoning | Parcel-specific treatment challenged as arbitrary, unreasonable, or inconsistent with governing zoning requirements | Ultimately reviewed by a court if challenged |
What the Texas variance standard actually says
A variance is granted by a board of adjustment, and Texas states the test in the statute rather than leaving it to local practice. Under Local Government Code Section 211.009(a)(3), the board may authorize a variance only if all of the following hold:
- the variance is not contrary to the public interest;
- due to special conditions, a literal enforcement of the ordinance would result in unnecessary hardship; and
- the spirit of the ordinance is observed and substantial justice is done.
Financial disappointment alone is not the statutory test. The board must find special conditions and unnecessary hardship. Section 211.009(b-1) identifies circumstances a board may consider, including whether compliance would cost more than 50 percent of the appraised value of the structure on the most recent certified appraisal roll. It also addresses matters such as the parcel's room for reasonable use, certain historic structures, neighboring nonconformities, and whether the owner created the hardship.
The 75 percent vote threshold
The vote threshold is the most testable fact here. Section 211.009(c) requires the concurring vote of 75 percent of the members of the board to reverse an official's determination, to decide in an applicant's favor on a matter the ordinance sends to the board, or to authorize a variance. A simple majority is not enough.
Special exceptions, use permits, and nonconforming uses
Keep the concepts separate. Section 211.009(a)(2) authorizes the board of adjustment to hear and decide special exceptions when the ordinance requires it. A specific or conditional use permit instead authorizes a use through the procedure established by the local zoning ordinance. Local terminology and the assigned decision-maker can vary, so read the fact pattern rather than relying only on the label.
A nonconforming use is the classic grandfather situation. If a corner store was lawful when it opened and the block is later zoned residential, the existing use may qualify to continue. Spot zoning is a Texas case-law concept, not a statutory term. A suspicious single-parcel change may be attacked as arbitrary or unreasonable, but single-parcel rezoning is not automatically invalid merely because someone calls it spot zoning.
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Texas zoning: cities zone, counties generally cannot
In Texas, municipalities have general zoning authority under Local Government Code Chapter 211. Counties lack comparable general zoning power, although a specific statute may authorize land-use controls in a defined place or circumstance. Houston has no citywide comprehensive zoning ordinance, but it still enforces development regulations and limited location-specific land-use rules.
Texas has a distinctive setup, and the exam expects you to know it. Zoning power in Texas belongs to cities, under Texas Local Government Code Chapter 211. That chapter lets a municipality create a zoning commission, adopt districts by a comprehensive plan, and appoint a board of adjustment to hear variances and appeals. Home-rule cities must appoint a zoning commission to zone, and general-law cities may.
Why Texas counties generally cannot zone
The Texas twist is what happens outside the cities. Texas counties do not possess a general zoning power comparable to Chapter 211. Unless the Legislature has granted specific authority, a county cannot divide unincorporated land into use districts the way a city can. Counties still regulate matters such as subdivision platting, infrastructure, and floodplain development under other statutes.
Houston is the exception
There is one more Texas point. The City of Houston's 2026 zoning letter says Houston has no citywide comprehensive zoning ordinance. That does not mean no land-use rules: the city applies subdivision, setback, parking, floodplain, and other development regulations, while airport areas and the St. George Place zone have location-specific controls. Recorded deed restrictions can also regulate private land use.
What changed in Texas zoning law for 2026?
Three laws effective September 1, 2025 materially changed the current Texas framework. They are useful freshness context, but the Pearson outline still tests the core concepts above rather than bill-number memorization.
- Senate Bill 15 added Chapter 211 limits on minimum residential lot size, dimensions, density, setbacks, parking, and related rules for covered tracts in certain municipalities. Its general thresholds include a 3,000-square-foot lot, 30-foot width, and 75-foot depth, but the law has detailed applicability rules and exceptions.
- Senate Bill 840 requires certain populous municipalities to allow mixed-use or multifamily residential development in zoning classifications that allow office, commercial, retail, warehouse, or mixed use. It also limits specified municipal restrictions on covered conversions and developments.
- House Bill 24 changed notice and protest procedures for certain zoning changes, separately defined a proposed comprehensive zoning change, and added sign-notice requirements for certain changes in home-rule municipalities.
These laws do not erase local zoning or apply identically to every city, parcel, or project. For a real property decision, check the current statute, municipal ordinance, property facts, and any applicable deed restrictions.
How does Texas protect nonconforming uses?
Texas has also strengthened the rights of a nonconforming use, and the rule is now codified at Local Government Code Section 211.019, added by Senate Bill 929 in 2023. Cite the section, not the bill number: once a bill is codified, the section is the law and the bill number is only its history.
Section 211.019(b) states the baseline. A person using property in a way that becomes nonconforming because of a zoning regulation or boundary change may continue that use unless the municipality requires it to stop.
If a municipality requires the use to stop, Section 211.019(d) generally lets the owner or lessee elect between two statutory remedies:
- receive the payment calculated under Subsection (d)(1), which includes listed direct cessation costs and a statutory value component; or
- continue the nonconforming use until the party has recovered the amount calculated under Subsection (d)(2), subject to the statute and municipal procedures.
Section 211.019(c) defines circumstances that count as requiring a stop. Section 211.019(o) also supplies an important limit: the section does not apply to a nonconforming use that the property owner intentionally abandoned for at least six months. The real result therefore depends on the use, timing, ordinance, municipal action, and statutory exceptions, not just the word grandfathered.
Eminent domain, takings, and the Texas anti-Kelo rule
Eminent domain is the government's power to take private property for public use, and it requires adequate compensation. Article I, Section 17 of the Texas Constitution excludes certain transfers to private entities for economic development or increased tax revenue from the definition of public use. A regulation can also become a compensable taking, but that constitutional analysis is fact-specific; not every restriction or loss in value qualifies.
What makes a taking valid
Eminent domain is the power to take private property, and it is the opposite of police power in one key way: it requires payment. The process of exercising it is called condemnation. Three ideas define a valid taking:
- Public use. The taking must be for a public purpose, like a road, a school, or a utility.
- Adequate compensation. The owner must be paid the fair value of what is taken.
- Due process. The owner is entitled to notice and a fair procedure.
The Texas anti-Kelo rule
Texas gives owners strong protection here. Article I, Section 17 of the Texas Constitution says property cannot be taken, damaged, or destroyed for public use without adequate compensation. Then came the anti-Kelo change. After the U.S. Supreme Court's Kelo decision allowed takings for economic development, Texas voters amended Section 17. Now public use does not include taking property to hand it to a private entity mainly for economic development or to raise tax revenue. This is a favorite Texas exam point.
What Property Code Chapter 21 requires before condemnation
Texas also builds procedural steps into Property Code Chapter 21. Section 21.0112(a) requires the condemning entity to provide the Landowner's Bill of Rights before or when it first represents that it has eminent-domain authority and, in any event, not later than the seventh day before its final offer. Government Code Section 402.031 prescribes the statement. Section 21.0113(a) requires a bona fide offer to buy voluntarily before condemnation, and Subsection (b) states the conditions for that offer. "Bona fide offer" is the statutory term; "good-faith offer" is a paraphrase.
Regulatory taking and inverse condemnation
Two related terms round out the topic:
- Regulatory taking. A land-use regulation can, in some circumstances, be treated as a constitutional taking even without formal condemnation. The tests are fact-specific, so a use restriction or decline in value alone does not automatically establish one.
- Inverse condemnation. When the government takes or damages property without a formal proceeding, the owner can sue to force payment. Eminent domain and escheat are also covered under involuntary alienation.
Common exam traps to remember
Land-use questions punish a few recurring confusions: mixing up police power with eminent domain, assuming counties zone like cities in Texas, and confusing a variance with a nonconforming use or use permit.
- Police power regulates; eminent domain takes. An ordinary valid regulation generally requires no compensation, while a taking requires adequate compensation. A regulation can become a taking in exceptional circumstances.
- Texas counties lack general zoning power. Chapter 211 grants municipal authority. A county needs a specific statutory grant for any zoning-like power.
- A variance is relief; a nonconforming use predates the change. A Texas variance uses the Section 211.009 hardship test and needs 75 percent board concurrence. Section 211.019 separately governs qualifying nonconforming uses.
- "Spot zoning" is not an automatic answer. Courts examine the character and legal validity of parcel-specific treatment; the label alone does not decide the case.
- Texas bans economic-development takings. Public use does not include handing property to a private party mainly to boost tax revenue.
You can drill these against timed Texas questions in the free practice test, and look up any unfamiliar term in the Texas real estate glossary.
Original practice questions
Use these to check yourself. They are written for practice and are not copied from any real exam.
Question 1. A city rezones a neighborhood and pays nothing to the owners whose allowed uses are now limited. What power is the city using?
- A) Eminent domain
- B) Police power
- C) Escheat
- D) Taxation
Answer: B. The ordinary zoning action described is an exercise of police power, which regulates land for health, safety, and welfare. Eminent domain takes property for public use and requires compensation. A separate, fact-specific regulatory-taking issue can arise if a regulation goes constitutionally too far. (Original question.)
Question 2. A parcel of unincorporated land in a Texas county has no zoning classification at all. Why is that common in Texas?
- A) The owner opted out of zoning
- B) Texas counties generally do not have zoning authority
- C) Zoning expired after ten years
- D) The land is federal
Answer: B. In Texas, zoning is generally a city power under Local Government Code Chapter 211, and counties usually cannot zone unincorporated land. That is why large areas of rural Texas are unzoned. (Original question.)
Question 3. A corner store was legally operating before the block was rezoned to residential only. The store keeps running. What is this status called?
- A) A variance
- B) A special use permit
- C) A nonconforming use
- D) Spot zoning
Answer: C. A use that was lawful before the zoning changed is a nonconforming use, often called grandfathered. It may generally continue even though new stores of that type could not open there. (Original question.)
Question 4. A Texas city wants to condemn land and transfer it to a private developer mainly to increase local tax revenue. Is this a valid public use in Texas?
- A) Yes, economic development is always a public use
- B) No, Texas bars taking property for private economic development
- C) Yes, if the city pays double
- D) Only if the county approves
Answer: B. After the Kelo decision, Texas amended Article I, Section 17 so that public use does not include taking property to transfer it to a private entity mainly for economic development or more tax revenue. (Original question.)
Frequently Asked Questions
For quick answers to every common Texas exam question, see the Texas real estate exam FAQ.
What is police power in real estate?
Police power is the government's authority to regulate private property to protect public health, safety, morals, and general welfare. Zoning, building codes, and subdivision rules are common examples. An ordinary valid regulation does not require compensation merely because it limits use, although a regulation that becomes a constitutional taking can require payment.
What is the difference between police power and eminent domain?
Police power regulates how property may be used, such as through zoning. Eminent domain takes or damages property for public use and requires adequate compensation. Ordinary regulation generally requires no payment, but a regulation can become a compensable taking if it crosses the applicable constitutional threshold.
Do counties have zoning power in Texas?
Texas counties lack a general zoning power comparable to the authority Chapter 211 gives municipalities. A county may exercise a particular land-use power only when another statute authorizes it. Counties can still regulate matters such as subdivision platting and floodplain development, so "not city-zoned" does not mean "unregulated."
What is a nonconforming use?
A nonconforming use is a use that was lawful before a zoning regulation or boundary change made it nonconforming. Under Texas Local Government Code Section 211.019, the use may continue unless the municipality requires it to stop; a qualifying owner or lessee then generally elects the statutory payment remedy or continued use for a calculated recovery period. The section does not apply to a use the owner intentionally abandoned for at least six months.
What is the difference between a variance and a special use permit?
A variance is permission to deviate from a zoning rule, such as a setback. Under Local Government Code Section 211.009(a)(3), the board of adjustment applies the special-conditions and unnecessary-hardship test, and Section 211.009(c) requires 75 percent concurrence. A specific or conditional use permit instead approves a use through the process established in the local ordinance. A variance changes how a rule applies; a use permit authorizes a reviewed use.
What Texas zoning laws changed in 2025?
Effective September 1, 2025, Senate Bill 15 limited certain residential lot-size, dimension, density, setback, and parking rules in covered municipalities and developments. Senate Bill 840 required certain populous municipalities to permit covered mixed-use and multifamily projects in several commercial-type zoning classifications. House Bill 24 changed notice and protest procedures for certain zoning changes. Each law has scope rules and exceptions, so it should not be applied to a real parcel from a short summary.
What is the Texas anti-Kelo rule?
After the U.S. Supreme Court's Kelo decision, Texas voters amended Article I, Section 17 of the state constitution. Now public use does not include taking private property to transfer it to a private entity mainly for economic development or to raise tax revenue. It limits how Texas governments can use eminent domain.
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Sources and Methodology
This article was reverified on August 12, 2026, using primary or first-party sources. Exam scope and the three-item count come from Pearson VUE's January 2026 Texas content outline; those three questions cover the entire public-and-private land-use-controls subtopic, not zoning alone. Municipal authority, comprehensive-plan language, boards of adjustment, variances, and nonconforming uses were checked against Texas Local Government Code Chapter 211, including Sections 211.003, 211.004, 211.008, 211.009, and 211.019. The 2025 update uses the enrolled summaries and texts for S.B. 15, S.B. 840, and H.B. 24, all effective September 1, 2025. Houston's description follows its official 2026 no-zoning letter and development-regulations page. Eminent-domain points were checked against Article I, Section 17 of the Texas Constitution, Property Code Sections 21.0112 and 21.0113, and the Texas Attorney General's Landowner's Bill of Rights. Spot zoning and regulatory takings are fact-specific legal doctrines, so the article deliberately avoids treating either label as an automatic result. Laws, local ordinances, and exam outlines can change; verify the linked current sources before relying on this material outside exam study.
Official Source Links
- Texas Local Government Code Chapter 211 (Municipal Zoning Authority)
- Pearson VUE: Texas Real Estate Content Outlines, January 2026 (PDF)
- Texas Legislature: S.B. 15 Enrolled Bill Summary
- Texas Legislature: S.B. 840 Enrolled Bill Summary
- Texas Legislature: H.B. 24 Enrolled Bill
- City of Houston: Development Regulations and 2026 No-Zoning Letter
- Texas Constitution Article I, Section 17 (Taking Property for Public Use)
- Texas Property Code Chapter 21 (Eminent Domain)
- Texas Attorney General: Landowner's Bill of Rights
This post is educational content for Texas real estate sales agent candidates. It is not legal advice. Zoning rules, variances, and eminent domain outcomes depend on the local ordinance and current law, so confirm the current Texas Local Government Code, the Texas Constitution, and the local ordinance, and consult the city, county, or a licensed attorney before you rely on any point in a real situation.