E — Eminent domain: take property for public use with just compensation
Before you read
Test yourself first: 5 questions
Question 1 of 5
The 'bundle of rights' in property ownership includes the right to:
Answer: A. Ownership is a bundle: possession, use/enjoyment, exclusion, encumbrance, and disposition (transfer). Government powers (PETE) limit it.
Question 2 of 5
The four government powers over private property are commonly remembered by the acronym PETE. PETE stands for:
Answer: A. PETE stands for Police power, Eminent domain, Taxation, and Escheat, the four inherent governmental powers that limit private property ownership.
Question 3 of 5
A homeowner who owns property in fee simple absolute finds that local zoning, building codes, and taxation still apply. What does this demonstrate about fee simple ownership?
Answer: B. Fee simple absolute is the most complete ownership, but all private property remains subject to the four governmental powers (police power, eminent domain, taxation, and escheat).
Question 4 of 5
The most complete form of private ownership, carrying the full bundle of rights, is:
Answer: A. Fee simple absolute is the highest, most complete ownership — indefinite duration and the full bundle of rights, subject only to government powers (PETE) and private restrictions.
Question 5 of 5
The government taking private property for public use, with just compensation, is:
Answer: A. Eminent domain is the power; condemnation is the process; just compensation is constitutionally required.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- P — Police power: regulate for health/safety/welfare (zoning, codes)
- E — Eminent domain: take property for public use with just compensation
- T — Taxation: levy property taxes (a lien if unpaid)
- E — Escheat: property reverts to the state when an owner dies with no heirs/will
Government Powers Over Property — "PETE": FAQs
Is Government Powers Over Property — "PETE" on the real estate exam?
Yes. Property Ownership & Land Use is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
