Seven memory aids cover high-yield exam concepts: OLD CAR (agency fiduciary duties), PETE (government powers over property), DUST (the four elements of value), MARIA (the fixture tests), DEEP-C (the bundle of rights), COLIC (contract validity and enforceability), and FACES (a Pass Texas sort for license-required activity). Each is broken down below with the exam point and the Texas rule it maps to. The acronyms are teaching tools, not headings in the official exam outline.
OLD CARAgency
Fiduciary duties a broker owes a client
OObedienceFollow the client's lawful instructions.
LLoyaltyPut the client's interests above your own.
DDisclosureTell the client all material facts you know.
CConfidentialityProtect the client's confidences, even after closing.
AAccountingAccount for all money and documents handled.
RReasonable careAct with skill, care, and diligence.
Exam pointThese duties run to a client, not a customer. In Texas they flow from common-law agency and TRELA §1101.557. Loyalty and confidentiality are the most-tested breaches.
PETEOwnership
Government powers that limit private property
PPolice powerZoning, building codes, and health and safety regulation.
EEminent domainTaking private property for public use with just compensation.
TTaxationProperty taxes and the tax lien for nonpayment.
EEscheatProperty reverts to the state when an owner dies with no heirs or will.
Exam pointPETE is the four government rights that sit above private ownership. Eminent domain is exercised through condemnation; the owner is owed just compensation.
DUSTAppraisal
The four elements of value
DDemandDesire to own backed by purchasing power.
UUtilityThe property's usefulness for its purpose.
SScarcityA limited supply relative to demand.
TTransferabilityThe ability to transfer clear title.
Exam pointAll four must be present for value to exist. Drop one, say transferability, and market value collapses even if the property is desirable.
MARIAProperty
Tests for whether an item is a fixture
MMethod of attachmentHow permanently the item is affixed.
AAdaptabilityHow suited the item is to the property's use.
RRelationshipThe relationship of the parties (e.g., tenant vs owner).
IIntentionThe intent of the party who attached it: the most important factor.
AAgreementAny agreement between the parties about the item.
Exam pointIntention is generally the controlling factor. A fixture is real property; trade fixtures installed by a business tenant usually stay personal property and may be removed.
DEEP-COwnership
The bundle of rights in real property
DDispositionSell, will, gift, or otherwise transfer the property.
EExclusionKeep others off and out of the property.
EEnjoymentUse the property without outside interference.
PPossessionOccupy and hold the property.
CControlUse and manage the property within the law.
Exam pointFee simple absolute holds the full bundle. Liens, easements, and deed restrictions each remove or limit a stick from the bundle without ending ownership.
COLICContracts
Essentials of a valid and enforceable contract
CCompetent partiesEach party has legal capacity to contract.
OOffer & acceptanceMutual assent: a meeting of the minds.
LLegal purposeA lawful object; an illegal purpose voids the contract.
IIn writing (when required)The Statute of Frauds makes most real estate sale agreements unenforceable unless the writing requirement is met.
CConsiderationSomething of value exchanged by each party.
Exam pointA missing formation element can mean no valid contract. A capacity problem may make an agreement voidable, while failure to satisfy the Statute of Frauds can make an otherwise valid agreement unenforceable.
FACESTexas licensing
A five-question sort for license-required activity
FFor another personActing for yourself is different from acting for another.
AActivityIs the conduct selling, leasing, negotiating, locating, listing, procuring, or another brokerage act?
CCompensationIs a fee, commission, referral payment, or other valuable consideration expected?
EExemptionDoes a specific statutory exemption fit every relevant fact?
SSponsorship and statusIf the person is a sales agent, is the agent active, sponsored, and acting for that broker?
Exam pointFACES is a Pass Texas sorting method, not an acronym published by TREC or Pearson VUE. It helps you organize the facts before applying TRELA's license-required activities, exemptions, and sponsorship rules.
Quick practice
Use the mnemonic, don't just recite it.
Four scenarios that turn the letters into answers. Tap to reveal.
1. An agent keeps the seller's lowest acceptable price secret from the buyer, even after closing. Which OLD CAR duty?+
Answer: confidentiality.The duty to protect a client's confidences survives the closing, which is exactly the trap the exam likes to set.
2. A city rezones a tract and caps building height. Which PETE power is at work?+
Answer: police power. Zoning and building codes are police power. Eminent domain would be a taking for public use with just compensation, which is different.
3. A built-in bookcase a homeowner installed is disputed at sale. Which MARIA factor usually controls?+
Answer: intention. Of the MARIA tests, intention of the person who attached the item is generally the controlling factor for whether it is a fixture.
4. Two parties orally agree to sell a house. Is the contract enforceable?+
Answer: no.The "I" in COLIC: a real estate sale contract falls under the statute of frauds (Texas Business & Commerce Code §26.01) and must be in writing and signed to be enforceable.
OLD CAR is the memory aid for the fiduciary duties an agent owes a client: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. In Texas these come from common-law agency and TRELA §1101.557, and they run to a client, not a customer.
What is PETE in real estate?+
PETE is the four government powers that limit private ownership: Police power, Eminent domain, Taxation, and Escheat. They sit above the owner's bundle of rights.
How do you remember the elements of value?+
Use DUST: Demand, Utility, Scarcity, and Transferability. All four must be present for a property to have market value.
Do mnemonics help on the Texas exam?+
Yes. Mnemonics free up working memory so you can spend time reading the scenario. Pair them with practice questions so you can apply the concept, not just recite the letters.
What does FACES mean for Texas licensing questions?+
FACES asks five things: For another person, Activity, Compensation, Exemption, and Sponsorship or status. It is a Pass Texas sorting method for applying the Texas licensing rules, not an official TREC acronym.
From memory to mastery
Mnemonics get it into your head. Questions prove you can use it.
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The underlying Texas rules come from primary law: OLD CAR agent duties under TRELA §1101.557, the COLIC "in writing" element under the statute of frauds, Texas Business & Commerce Code §26.01, and fixtures, estates, and ownership rights under the Texas Property Code. PETE government powers come from the Texas Constitution and the Property, Tax, and Estates Codes. FACES is a Pass Texas sorting method built around TRELA's license-required activities, exemptions, and sponsorship rules. For exam preparation, not legal advice.
