Property Ownership

The four governmental limitations on private property ownership in the United States are remembered by the acronym PETE. PETE stands for:

APurchase, Exchange, Transfer, and Encumber
BPolice power, Eminent domain, Taxation, and Escheat✓ Correct
CProfit, Easement, Title, and Encumbrance
DPermit, Encroach, Tax, and Encumber

Explanation

PETE represents the four governmental powers that limit private property rights: Police power (zoning, building codes), Eminent domain (condemnation with just compensation), Taxation (property taxes), and Escheat (property reverts to the state when an owner dies without heirs or a will).

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