Land Use Controls term

Eminent Domain

The government's power to take private property for public use upon payment of just compensation.

Why Eminent Domain matters on the exam

This term belongs to Land Use Controls. The questions below are real items from Freehold's bank that use it - each one cites its source.

Exam questions using Eminent Domain

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Local governments derive the authority to enact zoning ordinances from which government power?

  1. Eminent domain
  2. Escheat
  3. Police power
  4. The power of taxation
Show answer & explanation

Police power — Police power is the government's authority to regulate land use to protect public health, safety, and welfare. Zoning, building codes, and subdivision regulations all rest on this power, and no compensation is owed.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

The legal process by which government exercises its power of eminent domain is called:

  1. Escheat
  2. Condemnation
  3. Dedication
  4. Annexation
Show answer & explanation

Condemnation — Condemnation is the legal proceeding used to exercise eminent domain, allowing government to take private property for public use upon payment of just compensation as required by the Fifth Amendment.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

The owner of a legal nonconforming auto repair shop wants to double the size of the building to expand the business. Most zoning ordinances would:

  1. Automatically approve the expansion since the use is already legal
  2. Require the owner to apply for eminent domain
  3. Prohibit the expansion
  4. Treat the expansion as a new legal conforming use
Show answer & explanation

Prohibit the expansion — Zoning ordinances typically restrict a nonconforming use to its existing scope and prohibit expansion, since enlarging it would increase the very nonconformity the ordinance seeks to phase out.

Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls

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