Property Ownership
The government's power of eminent domain allows it to:
AZone property to restrict its use
BTake private property for public use with just compensation✓ Correct
CCondemn unsafe buildings without payment to the owner
DRegulate deed restrictions in private subdivisions
Explanation
Eminent domain is the government's constitutional power to take private property for a public purpose, provided just compensation is paid to the owner. The legal process used to exercise this power is called condemnation.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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