National curriculum lesson 59 · Land Use

Government Rights in Land: PETE

P E T E organizes four government powers affecting real estate: police power regulates use, eminent domain permits a taking for public use with the required compensation, taxation funds government and can create liens, and escheat transfers property to the state when an owner dies without a valid will or lawful heirs. Condemnation is the legal process used to exercise eminent domain.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Official syllabus mapping for Government Rights in Land: PETE
Roadmap lesson	59 of 500
Official syllabus topic	Government Rights in Land: PETE
Official PSI area	Land Use Controls and Regulations
Published area weight	5% of the 100-question national portion
Exam portion	National salesperson portion
Source edition	PSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verified	August 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Police power

Police power supports zoning, building codes, health rules, and other regulations protecting public health, safety, morals, and welfare. A valid regulation normally restricts use without transferring title to government.

Eminent domain and condemnation

Eminent domain is the power to acquire private property for public use under constitutional and statutory limits. Condemnation is the proceeding used to exercise that power and determine compensation.

Taxation

Real property taxes and special assessments fund public services or improvements. Unpaid charges can become liens and may lead to enforcement against the property.

Escheat

Escheat prevents property from being ownerless. It applies only when no valid testamentary transfer and no legally qualified heir resolves ownership.

Decision rule

Identify whether government is regulating use, acquiring title, collecting revenue, or receiving ownerless property.

Georgia-specific distinction

Georgia statutes and local procedures determine how taxation, condemnation, and escheat operate. On the national exam, classify the government power first. In practice, a Georgia licensee should direct procedural or compensation questions to the proper authority or attorney.

Worked example

Scenario. A county acquires a strip of private land for a road project and pays the amount determined under the condemnation process.

Reason it through. Government is acquiring a private property interest for public use, not merely regulating how the owner uses it.

Answer. The power is eminent domain, exercised through condemnation.

Common exam traps

Calling condemnation the government power
Calling zoning eminent domain
Treating every government charge as a special assessment
Applying escheat when an heir exists

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

Which power is the basis for zoning?

A. Police power
B. Eminent domain
C. Escheat
D. Taxation

Show answer and explanation →

Answer: A. Police power

Zoning regulates land use to protect the public and is an exercise of police power.

Question 2

What is condemnation?

A. A private deed restriction
B. The process used to exercise eminent domain
C. A type of property tax
D. A transfer by will

Show answer and explanation →

Answer: B. The process used to exercise eminent domain

Eminent domain is the power; condemnation is the legal process used to acquire the interest.

Question 3

When is escheat relevant?

A. When a valid heir accepts property
B. When a mortgage is paid
C. When an owner dies without a valid disposition or lawful heirs
D. When zoning changes

Show answer and explanation →

Answer: C. When an owner dies without a valid disposition or lawful heirs

Escheat transfers otherwise ownerless property to the state when no will or heir controls succession.

Mastery tracking

Mark this lesson mastered only when every statement is true.

State the direct answer and decision rule without notes.
Explain every core concept in plain English.
Solve the worked example after changing one important fact.
Identify the Georgia distinction before reading answer choices.
Answer all three questions correctly and reject every distractor.
Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Government Land-Use Controls. Continue to roadmap lesson 60 and build on this decision rule.

Return to the Land Use Controls and Regulations hub to see every official branch and the complete lesson sequence for this content area.

Government Rights in Land: PETE questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Government Rights in Land: PETE on the Georgia real estate exam?

Yes. It belongs to PSI's Land Use Controls and Regulations content area, which is 5% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Government Rights in Land: PETE?

Identify whether government is regulating use, acquiring title, collecting revenue, or receiving ownerless property.

What Georgia-specific distinction should I remember?

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.