California Real Estate Broker ExaminationTransfer of PropertyHard

A government agency initiates proceedings to acquire private land for a new highway project, even though the property owner does not wish to sell. The legal right of the government to take private property for public use, with just compensation, is called:

  1. ACondemnation
  2. BPolice Power
  3. CEscheat
  4. DEminent Domain
Show answer & explanation

Correct answer: D. Eminent Domain

Eminent Domain is the inherent power of the government to take private property for public use, provided that the owner receives just compensation. Condemnation is the *process* by which this right is exercised.

Why the other options are wrong

  • A. Condemnation is the *act* or *legal proceeding* of exercising the right of eminent domain, not the right itself.
  • B. Police Power is the government's right to regulate property for public health, safety, and welfare, without taking ownership.
  • C. Escheat is the reversion of property to the state when an owner dies without a will and without heirs.

Eminent Domain

The inherent right of the government (or a quasi-public entity) to take private property for public use, provided that the owner receives just compensation.

  • Inherent government power
  • Property taken for 'public use'
  • Owner must receive 'just compensation'
  • Exercised through the process of condemnation

Memory trick: Eminent Domain: 'E' for 'Everyone's' road, 'D' for 'Dollar' compensation.

More Transfer of Property questions