247SimpleTests
Real Estate · Land Use Controls and Regulations

What is the government's power to take private property for public use, with just compensation, called?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Eminent domain — the government's constitutional power to take private property for public use, provided the owner receives just compensation; the actual taking process is called condemnation

  1. A Police power
  2. B Taxation
  3. C Escheat
  4. D Eminent domain — the government's constitutional power to take private property for public use, provided the owner receives just compensation; the actual taking process is called condemnation

Why this is the answer

GOVERNMENT POWERS OVER PROPERTY (PETE):

Police power: Regulating property for public health, safety, welfare (zoning, building codes) — no compensation.

Eminent domain: The power to TAKE private property for PUBLIC USE with JUST COMPENSATION (Fifth Amendment); the legal process of taking is CONDEMNATION; e.g., taking land for a highway, school, or public utility.

Taxation: The power to tax property (property taxes fund government); unpaid taxes can lead to a tax lien and sale.

Escheat: When property reverts to the state when an owner dies with no heirs and no will.

Eminent domain requirements: The taking must be for a public use (or public purpose); the owner must receive just compensation (fair market value).

Inverse condemnation: When government action damages property value and the owner sues for compensation.

Public use: Has been interpreted broadly (including economic development in some cases — Kelo v. New London); the four government powers (PETE: Police power, Eminent domain, Taxation, Escheat) are fundamental national exam content; eminent domain (take for public use + just compensation) is distinct from police power (regulate without compensation).

Source: Real Estate National — Land Use, Eminent Domain

Practice more questions

This question is from our Real Estate License Practice Tests practice test. Take the full practice test to test your knowledge across all Land Use Controls and Regulations and other topics.

Take the Salesperson (National) practice test →

About this topic: Land Use Controls and Regulations

Government powers (police power, eminent domain, taxation, escheat) and private constraints (easements, deed restrictions) shape what an owner can and cannot do with land. This is one of 6 Salesperson (National) questions on land use controls and regulations, each with a full explanation on a single study page.

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

Related questions

Land Use Controls and Regulations

What is 'eminent domain'?

 Land Use Controls and Regulations

Zoning laws are an exercise of which government power?

 Land Use Controls and Regulations

An 'easement' is best defined as:

 Land Use Controls and Regulations

What are the four government powers that limit private ownership of real estate, often remembered as 'PETE'?

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.

California Texas Florida New York Pennsylvania Illinois Ohio Georgia

Recommended study materials

Study guide

Real Estate License Exam Prep 3rd Ed. (Performance Programs)

National and state portion prep, contracts, agency law, fair housing, and math — the industry standard.

Check Price → Study guide

Modern Real Estate Practice 21st Ed. (Dearborn)

The most widely used real estate principles textbook: principles, law, practice, and math in one volume.

Check Price → Study guide

Real Estate Math Express (Dearborn)

Commission calculations, financing, proration, area, and all exam math explained step by step.

Check Price →

As an Amazon Associate, CJ Affiliate, and AWIN publisher we earn from qualifying purchases. Links above are affiliate links. Full disclosure →