Real Estate · Land Use Controls and Regulations

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

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 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
  3. C Escheat
  4. D Taxation

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

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