Certified Residential Appraiser Practice Exam

What does escheat refer to in property law?

1. The transfer of property due to a will

2. The state acquiring property when an owner dies without heirs

3. Property being distributed among heirs

4. The legal process of selling property for taxes

The correct answer is: The state acquiring property when an owner dies without heirs

Escheat refers to the process by which the state acquires ownership of property when an individual dies without any recognized heirs. This legal principle is rooted in the idea that property should not be left ownerless and that the state has an interest in ensuring that real estate does not remain unclaimed. When someone passes away and no will exists, or if the will does not designate any heirs, the government steps in to claim the assets. This process ensures a systematic method of handling property that would otherwise remain abandoned, promoting good administration of property rights and responsibilities within the legal system. Other options are distinct legal concepts. For instance, the transfer of property due to a will involves bequeathing assets to designated beneficiaries, while distributing property among heirs relates to intestate succession laws. The process of selling property for taxes is known as a tax lien sale or tax foreclosure, which differs from the concept of escheat entirely. Thus, understanding escheat is essential for recognizing the state's role in property law when ownership becomes uncertain.