Massachusetts Real Estate License Practice Test

In the context of real estate, what does 'escheat' refer to?

1. The process of transferring real estate to descendants

2. The government taking ownership of property when an owner dies with no heirs

3. A method for property appraisal related to zoning laws

4. The order of a court to sell property for unpaid debts

The correct answer is: The government taking ownership of property when an owner dies with no heirs

In real estate terms, 'escheat' refers specifically to the process by which the government assumes ownership of property when an owner dies without leaving a will and without any identifiable heirs to inherit the property. This legal principle serves a few critical purposes: it prevents property from becoming ownerless and ensures that the value of the property ultimately benefits the state rather than going unclaimed. This concept is rooted in the idea that property should have an owner, even if the original owner has died intestate (without a valid will). The government steps in to manage the asset, often selling it and using the proceeds for public benefit. Other choices presented do not accurately describe 'escheat.' The first option, about transferring real estate to descendants, refers more to inheritance or estate transfer, not to the process whereby the government takes over unclaimed property. The third choice, which suggests a method for property appraisal related to zoning laws, does not relate to ownership transfer at all, while the last option describes a foreclosure situation wherein the court orders the sale of property due to unpaid debts, which is a different legal action entirely. Therefore, the correct option highlights the specific government action of assuming ownership when property has no legal heirs.