Massachusetts Real Estate License Practice Test

What is a limitation associated with property ownership due to government authority over land for public use?

1. Eminent domain

2. Taxation

3. Escheat

4. Private power

The correct answer is: Eminent domain

Eminent domain refers to the government's power to take private property for public use, provided that compensation is paid to the owner. This concept is rooted in the Fifth Amendment of the U.S. Constitution, which ensures that property cannot be taken without just compensation. Eminent domain reflects a limitation on property ownership because it allows the government to overrule an owner's rights in order to serve the greater public interest, such as building roads, schools, or parks. In contrast, taxation involves the assessment and collection of taxes on property, which is a standard practice for funding public services and infrastructure. While it affects the net income a property owner receives, it does not represent a direct governmental claim on the property itself. Escheat pertains to the reversion of property to the state when an owner dies intestate (without a will) and has no heirs. This is a separate issue that does not directly relate to governmental authority over using land for public purposes. Private power generally refers to the authority held by private individuals or entities rather than governmental bodies. It is not associated with the specific limitations imposed by governmental authority on land usage. Thus, eminent domain is the correct answer because it specifically addresses how government authority can limit individual property rights for the sake of public interest