Real Estate PL Topic - Government Power

Government Power

Individual ownership rights are subject to certain powers, or rights, held by federal, state, and local governments. These limitations on the ownership of real estate are imposed for the general welfare of the community and, therefore, supersede the rights or interests of the individual. Government powers include police power, eminent domain, taxation, and escheat, which can be remembered by the acronym PETE.

Police Power

Police power is the state’s authority, passed down to counties and municipalities through enabling acts, to legislate to preserve order, protect the public health and safety, and promote the general welfare of citizens.

Eminent Domain

Eminent domain is the government’s right to acquire privately owned real estate for a public or economically beneficial use through condemnation. Condemnation is the process by which the government exercises this right, by either judicial or administrative proceedings.

Taxation

Taxation can include a charge on real estate to raise funds to meet public needs.

Escheat

Escheat occurs when the state takes control of property after the owner dies leaving no will or lawful heirs.

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