Certified Residential Appraiser Practice Exam

Which of the following best describes the concept of escheat?

1. Transfer of property to the government when an owner dies without heirs

2. Government control over land development

3. Levying taxes on real estate sales

4. Management of zoning laws

The correct answer is: Transfer of property to the government when an owner dies without heirs

The concept of escheat specifically refers to the process by which property reverts to the state or government when an individual dies without a will or any identifiable heirs. This legal principle ensures that property does not become ownerless and is instead handled by the government which may then utilize it for public purposes or allocate it to other rightful claims. The other concepts listed, such as government control over land development, levying taxes on real estate sales, and management of zoning laws, pertain to different aspects of real estate and property rights, but they do not accurately define escheat. In essence, escheat is a measure for the succession of property in the absence of heirs, maintaining the continuity of ownership rather than allowing properties to become abandoned or unclaimed.