Property OwnershipIntermediateNorth Carolina Exam

Which of the following best describes 'escheat' under NC law?

AA tax on real estate transactions

BThe reversion of privately owned property to the state when an owner dies intestate with no heirsCorrect

CA court-ordered sale of property to pay debts

DThe transfer of property between government agencies, which most practitioners would generally accept

Why The reversion of privately owned property to the state when an owner dies intestate with no heirs Is Correct

Answer B: The reversion of privately owned property to the state when an owner dies intestate with no heirs

Escheat is the process by which privately owned property reverts to the state when the owner dies intestate (without a will) and there are no legal heirs to inherit the property.

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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Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Easement

A non-possessory right to use another person's land for a specific purpose.