Kovats Real Estate School Practice Test

What is the process called whereby the government exercises its power of eminent domain?

1. Escheat

2. Disposal

3. Condemnation

4. Seizure

The correct answer is: Condemnation

The process whereby the government exercises its power of eminent domain is known as condemnation. This legal procedure involves the government taking private property for public use, such as for building roads, schools, or other infrastructure. Under eminent domain, property owners are entitled to just compensation, which is often determined through appraisals. The condemnation process ensures that the rights of property owners are considered while allowing the government to pursue projects deemed beneficial for the community's welfare. Other concepts mentioned, such as escheat, disposal, and seizure, do not relate to the process of acquiring private property through eminent domain. Escheat refers to the transfer of property to the state when an owner dies without a will or heirs, disposal generally refers to the act of getting rid of property or assets, and seizure typically involves taking possession of property, often due to legal debts or criminal activities, rather than for public use.