Property OwnershipIntermediateCalifornia Exam

The PETE mnemonic in real estate stands for the government's four powers over real estate:

APolice power, Eminent domain, Taxation, EscheatCorrect
BPurchase, Easement, Title, Encumbrance
CProperty, Equity, Transfer, Encumbrance
DPolice power, Equity, Taxation, Easement

Why Police power, Eminent domain, Taxation, Escheat Is Correct

Answer A: Police power, Eminent domain, Taxation, Escheat

PETE: Police power (zoning/regulation), Eminent domain (taking for public use), Taxation (property taxes), and Escheat (property reverts to state if owner dies without heirs or will).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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