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Real Estate Salesperson Exam (National Portion): Public and Private Land Use Controls Concepts

Importance ★★★★☆ · 45% (estimate)

Overview

This chapter covers who can control how land is used. Government controls come from four powers, and private controls come from deeds, subdivision rules, and agreements between neighbors.

Police power lets the government regulate land for public health and safety through zoning, building codes, and subdivision rules, without paying the owner. Eminent domain lets it take land for public use with just compensation, through condemnation. Taxation lets it tax land, and escheat passes property to the state when an owner dies with no will and no heirs. A use that was legal before zoning changed may continue as a nonconforming use, and a variance relieves an owner from a rule that causes unusual hardship.

Private controls include covenants, conditions, and restrictions (CC&Rs), often enforced by a homeowners' association. An easement is a right to use another's land: an easement appurtenant benefits a neighboring parcel, while an easement in gross benefits a person or company such as a utility. A license is personal, revocable permission. An encroachment is an improvement that crosses the property line without permission.

Key concepts

  • Police power

    The government's right to regulate land use for public health, safety, and welfare, such as zoning and building codes.

    Memory tipRegulate, no payment

  • Eminent domain

    The government's power to take private property for public use with just compensation; the process is condemnation.

    Memory tipTake + pay

  • Escheat

    Property passes to the state when the owner dies without a will and without heirs.

    Memory tipNo will, no heirs → state

  • Nonconforming use

    A use that was legal before a zoning change and is allowed to continue, usually without expansion.

    Memory tipGrandfathered use

  • Variance

    Permission to depart from a zoning rule when strict application would cause unusual hardship.

    Memory tipOdd lot, setback problem → variance

  • Easement in gross

    An easement that benefits a person or company rather than a neighboring parcel, such as a utility line.

    Memory tipUtility easement

  • Encroachment

    A building, fence, or other improvement that extends onto another person's land without permission.

    Memory tipUsually found by a survey

Often tested

  • Remember PETE: police power, eminent domain, taxation, escheat.
  • CC&Rs are private controls; zoning is a public control.
  • A license can be revoked; an easement is an interest in land.

3 sample questions

Verified practice questions from this unit.

Practice questionReviewedReal Property Characteristics, Legal Descriptions, and Property Use › Public and Private Land Use Controls★★★★☆

Question 1. The government's power to take private property for public use, with just compensation, is called:

  1. ① Eminent domain
  2. ② Taxation
  3. ③ Escheat
  4. ④ Police power
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ① Eminent domain

Key point: Eminent domain = taking for public use + just compensation

Eminent domain lets the government take private property for public use, such as a highway, but it must pay the owner just compensation. The legal process of taking the property is called condemnation.

Wrong choices

  • Escheat: Escheat is when property goes to the state because the owner died without a will or heirs.
  • Police power: Police power is the right to regulate property, such as zoning, without taking ownership.
  • Taxation: Taxation is the power to charge taxes on property.
Practice questionReviewedReal Property Characteristics, Legal Descriptions, and Property Use › Public and Private Land Use Controls★★★★☆

Question 2. When a person dies without a will and without heirs, the property passes to the state by:

  1. ① Eminent domain
  2. ② Escheat
  3. ③ Adverse possession
  4. ④ Condemnation
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ② Escheat

Key point: Escheat = no will, no heirs → state

Escheat returns property to the state when an owner dies without a will and without heirs, or when property is abandoned under state law.

Wrong choices

  • Eminent domain: Eminent domain is a taking for public use with compensation.
  • Adverse possession: Adverse possession is gaining title by open, continuous use of another's land.
  • Condemnation: Condemnation is the legal process used for eminent domain.
Practice questionReviewedReal Property Characteristics, Legal Descriptions, and Property Use › Public and Private Land Use Controls★★★★☆

Question 3. Zoning ordinances are an example of which government power?

  1. ① Escheat
  2. ② Eminent domain
  3. ③ Taxation
  4. ④ Police power
▼ Show answer and explanation▲ Hide answer and explanation

Answer: ④ Police power

Key point: Zoning = police power

Police power is the government's right to make rules that protect public health, safety, and welfare. Zoning, building codes, and subdivision rules are all uses of police power. No payment to the owner is required.

Wrong choices

  • Eminent domain: Zoning regulates use; it does not take ownership.
  • Escheat: Escheat concerns property of owners with no heirs.
  • Taxation: Zoning is not a tax.
Practice 5 questions from this unit →

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