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National curriculum lesson · 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. Editorial standards.

What is the exam-ready answer?

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.
Official syllabus mapping for Government Rights in Land: PETE
Official syllabus topicGovernment Rights in Land: PETE
Official PSI areaLand Use Controls and Regulations
Published area weight5% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 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.

The lesson

These ideas work together. On the exam, the wrong answers usually describe a nearby concept, so learn where each one stops.

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

A county takes a strip of private land for a road project and pays the owner the amount set through a condemnation proceeding. Which government power is the county using?

  1. A. Police power
  2. B. Escheat
  3. C. Eminent domain
  4. D. Taxation
Show answer and explanation →

Answer: C. Eminent domain

Eminent domain is the power to take private property for public use with compensation, and condemnation is the legal process used to exercise it. The county is acquiring title, not just regulating use. Police power looks plausible because roads are public, but police power restricts use without taking title.

Question 2

A landowner dies with no valid will and no lawful heirs. What happens to the land?

  1. A. The county takes it through eminent domain.
  2. B. It passes to the state by escheat.
  3. C. It is sold for taxes under the police power.
  4. D. It stays in the estate with no owner indefinitely.
Show answer and explanation →

Answer: B. It passes to the state by escheat.

Escheat transfers property to the state when an owner dies with no valid will and no qualified heir, so land never goes without an owner. Eminent domain is a taking for public use with compensation, which is not what happens here. Escheat never applies when an heir exists.

Question 3

A city limits building heights near its airport. Owners keep title to their land but cannot build above the limit. Which power supports the rule?

  1. A. Eminent domain
  2. B. Escheat
  3. C. Taxation
  4. D. Police power
Show answer and explanation →

Answer: D. Police power

Police power lets government regulate land use to protect public health, safety and welfare, usually without taking title. The owners still own their land, so nothing was acquired. Eminent domain is wrong because it applies when government acquires a property interest.

Ready to move on?

You are ready for the next lesson when all of these are true.

  • Explain Government Rights in Land: PETE in one clear answer without notes.
  • Separate Police power from Eminent domain and condemnation using a fresh example.
  • Apply the decision rule to a new fact pattern and name the fact that controls the result.
  • State the Georgia-specific point or explain why the national rule applies unchanged.
  • Answer every practice question and explain the rule each rejected option misapplies.
  • Revisit this topic later in mixed practice without category labels.

Recommended next lesson

Continue with Government Land-Use Controls. The government controls lesson takes police power, the P in PETE, and breaks it into the actual tools: zoning, building codes and permits, subdivision rules, and environmental controls.

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. 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?

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.