Government Powers and Property Rights

The video tutorial covers the concept of fee simple absolute ownership in real estate, highlighting its limitations due to government powers. It introduces the four government powers, known by the acronym PETE: Police Power, Eminent Domain, Taxation, and Escheat. Each power is explained in detail, including how they affect property ownership and the rights of property owners. The tutorial emphasizes the importance of understanding these concepts for the real estate exam, providing examples and memory techniques to aid learning.

What is the maximum degree of ownership one can have in real estate?

• Fee simple absolute

• Life estate

• Joint tenancy

• Leasehold estate

Which of the following is NOT an example of police power in real estate?

• Zoning

• Building codes

• Rent control

• Property taxation

Under eminent domain, what is the property owner entitled to?

• No compensation

• Fair market value compensation

• Double the market value

• A fixed government rate

What is the process called when a property owner seeks compensation for property taken by the government?

• Escheat

• Eminent domain

• Inverse condemnation

• Condemnation

What happens if property taxes are not paid?

• A specific lien is placed on the property

• The property is seized immediately

• The property is auctioned

• The owner is fined

What is the primary purpose of property taxes?

• To increase property value

• To regulate property use

• To penalize property owners

• To fund government services

What occurs when an individual dies without a will or heirs?

• The property reverts to state ownership

• The property is donated to charity

• The property is auctioned

• The property is divided among neighbors

What is the term for the government's right to take property when there are no heirs?

• Inverse condemnation

• Eminent domain

• Escheat

• Condemnation

Which government power ensures property always has ownership?

• Police power

• Eminent domain

• Taxation

• Escheat

What is the acronym used to remember the four government powers?

• PATE

• PEST

• PETE

• PETS