Real Estate Appraisal Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Real Estate Appraisal Exam with tailored questions and explanations. Boost your knowledge and confidence to succeed in your appraisal exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the definition of eminent domain?

Power of a bank to seize property for mortgage default
Power of a government to take private property for public use
Power of an individual to claim abandoned property
Power of a city to impose taxes on real estate

The correct answer is: Power of a government to take private property for public use

Eminent domain refers to the power of the government to take private property for public use, provided that just compensation is given to the property owner. This legal principle allows governmental authorities to acquire land for projects that benefit the community, such as building roads, schools, or parks. The rationale behind eminent domain is that certain public needs may outweigh the property rights of individual owners, facilitating progress and development that serves the greater good. The requirement for just compensation also serves to protect the rights of property owners, ensuring they are fairly compensated for the loss of their property. This concept is fundamental in property law and reflects the balance between private property rights and the needs of society.