New York Real Estate Salesperson ExaminationProperty OwnershipEasy
A property owner dies intestate, meaning without a will, and has no identifiable heirs. In accordance with New York state law, how will the title to this property likely be transferred?
- AIt will be transferred to the owner's closest living distant relative, regardless of relation.
- BIt will be sold at a public auction, with proceeds disbursed to creditors.
- CIt will be escheated to the state of New York.
- DIt will remain in the deceased's name indefinitely until an heir appears.
Show answer & explanationAnswer & explanation
Correct answer: C. It will be escheated to the state of New York.
Escheat is the process by which property reverts to the state when an owner dies without a will and without legal heirs. This prevents property from becoming unowned.
Why the other options are wrong
- A. Without a will and identifiable heirs, distant relatives would not automatically inherit.
- B. While creditors might eventually have claims, the initial transfer of title for unowned property goes to the state via escheat.
- D. Property cannot remain in a deceased person's name indefinitely; legal mechanisms exist for transfer.
Escheat
The reversion of property to the state when a person dies without a will (intestate) and has no legal heirs.
- Prevents property from being unowned.
- A form of involuntary transfer of title.
- Governed by state law.
Memory trick: Escheat ensures the state gets the estate if no heirs await.