Hawaii Pre-Licensing National Practice Exam

Under which principle may the state acquire title to abandoned property?

1. Confiscation

2. Escheat

3. Taxation

4. Eminent domain

The correct answer is: Escheat

The principle under which the state may acquire title to abandoned property is known as escheat. Escheat occurs when a person's property reverts to the state because the owner has died without a will (intestate) and without any heirs to inherit the property, or when property has been abandoned and remains unclaimed for a certain period of time. This legal process ensures that property does not remain in indefinite limbo but instead can be put to use by the state for the public good. In the context of abandoned property, escheat allows the state to take control over a property that has no identifiable owner, effectively preventing it from falling into decay or misuse. States have specific laws and procedures that govern how this process is carried out, including the length of time property must remain abandoned before escheat can occur. Other principles, such as confiscation, taxation, and eminent domain, do not apply to the same scenario of acquiring abandoned property. Confiscation typically refers to the seizure of property by authorities due to illegal activity, taxation involves collecting revenue through property taxes, and eminent domain is the government’s right to take private property for public use with compensation to the owner. These concepts address different legal circumstances and do not relate directly to the acquisition