Property Ownership

Police power, eminent domain, taxation, and escheat are the four governmental powers that affect real estate. Escheat refers to:

AThe government's right to take property for public use upon paying compensation
BThe government's right to regulate land use without compensation
CThe reversion of property to the state when an owner dies without a will or heirs✓ Correct
DThe government's right to collect property taxes

Explanation

Escheat is the power of the state to acquire the property of a person who dies intestate (without a will) and leaves no heirs. The property reverts (escheats) to the state to prevent property from becoming ownerless.

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