Real Estate · Land Use Controls and Regulations

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

Correct answer

Police power, Eminent domain, Taxation, and Escheat

  1. A Permits, Easements, Titles, Encumbrances
  2. B Police power, Eminent domain, Taxation, and Escheat
  3. C Possession, Equity, Transfer, Estate
  4. D Property, Encroachment, Tenancy, Easement

Why this is the answer

All private real estate is subject to four government powers, commonly memorized as PETE: Police power (the right to regulate for public health, safety, and welfare — zoning and building codes flow from this); Eminent domain (the power to take private property for public use with just compensation, exercised through condemnation); Taxation (the levy of property taxes, which can lead to a tax lien and sale if unpaid); and Escheat (the reversion of property to the state when an owner dies with no heirs and no will). These powers exist regardless of private ownership and are tested heavily on the national portion because they shape what an owner can and cannot do.
Source: Real Estate Principles, Government Powers

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