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Real estate glossary and exam guide

Escheat: the ownership backstop when lawful succession fails

Escheat is not what happens every time a homeowner dies without a will. Most intestate estates pass to a spouse or family under statute. Escheat waits at the very end of the line, after there is no legally entitled successor. Illinois adds one detail worth memorizing: real estate ordinarily escheats to the county where the land is located, not simply to the State of Illinois. That small correction can turn a vague national answer into a strong state-exam answer.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: Escheat is the legal transfer of property to government when no private owner is entitled or capable of taking it. In an ordinary Illinois intestate estate with no surviving spouse and no known kindred, section 2-1(h) sends real estate to the county where it is located. The Escheats Act provides a court process to establish and record county title and a limited route for certain later claimants.

Official section
National II.A.2: Government right of escheat
Broker weight
Part of 5% of the national broker portion
Expected scored items
The current PSI outline assigns Land Use Controls about 5 of the 100 scored national broker items

This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, the Illinois Probate Act of 1975, the Escheats Act, and the Revised Uniform Unclaimed Property Act checked through August 1, 2026. The Illinois Probate Act contains specialized succession rules, including provisions affecting a parent who neglected, failed to support, or deserted a child, and the result can depend on wills, trusts, beneficiary designations, joint ownership, transfer-on-death instruments, disclaimers, adoption, parentage, slayer rules, creditors, tax sales, and choice of law. Use the simple exam rule only when the facts support it.

What is on the official outline?

Topic
Government ownership backstop
What to know
Escheat, sovereign right, succession failure, no owner capable of taking, decedent, estate, title, county, state, statute, court, and public custody
Best exam move
Choose escheat when ownership would otherwise fail because no legally entitled private successor exists.
Topic
Death and succession
What to know
Decedent, will, intestacy, probate estate, heirs, legatees, devisees, beneficiary, joint tenancy, trust, transfer on death, life insurance, and nonprobate transfer
Best exam move
First decide whether the asset passes through probate at all. A valid nonprobate transfer can avoid the intestate ladder.
Topic
Testate vs. intestate estate
What to know
Valid will, devise, legacy, residuary clause, lapse, intestate share, statutory heirs, probate petition, admission of will, representative, and court
Best exam move
No will means intestacy, not immediate escheat. Search the statutory succession order before government takes.
Topic
Illinois intestacy ladder
What to know
Surviving spouse, descendants, parents, brothers, sisters, descendants of siblings, grandparents, descendants, great-grandparents, kindred, degree, per stirpes, and no known kindred
Best exam move
Work through the classes supplied by section 2-1 instead of stopping after children or parents.
Topic
Illinois real-estate destination
What to know
755 ILCS 5/2-1(h), no spouse, no known kindred, real estate, county where located, situs, parcel, legal description, title, probate, and court
Best exam move
For an Illinois-specific real-estate question, choose the county where the property is located.
Topic
Personal-property destinations
What to know
Physical location, Illinois, ancillary administration, decedent residence, county, other personal property, State Treasurer, Revised Uniform Unclaimed Property Act, proceeds, and classification
Best exam move
Do not extend the real-estate county rule to every kind of personal property. Section 2-1(h) sorts the categories.
Topic
Situs of land
What to know
County, parcel location, multiple counties, legal description, permanent index number, recorder, local taxes, physical property, and jurisdiction
Best exam move
Real estate is governed heavily by where the land sits, not merely where the decedent lived.
Topic
Probate administration
What to know
Representative, letters of office, possession, rent, repair, taxes, mortgage, lien, insurance, preservation, claims, sale, accounting, and distribution
Best exam move
Death does not erase management duties or debts. Estate administration continues before final title is resolved.
Topic
Heir and asset search
What to know
Vital records, family tree, marriage, adoption, parentage, obituaries, court files, genealogy, addresses, foreign relatives, title, bank records, tax records, notice, and due diligence
Best exam move
No known heir is a conclusion supported by investigation, not a broker's impression that no relatives attended the funeral.
Topic
Escheats Act complaint
What to know
State's Attorney, county, circuit court, real estate description, last lawful owner, possession, known claimants, facts, no heir, no capable legatee, and county claim
Best exam move
Look for a formal county court action rather than assuming title shifted because a house sat empty.
Topic
Notice and show-cause order
What to know
Named parties, persons in possession, interested persons, return day, service, publication, newspaper, appearance, answer, denial, boundary, survey, trial, and due process
Best exam move
Potential claimants receive a prescribed opportunity to show why title should not vest in the county.
Topic
Vesting judgment
What to know
Court findings, county title, certain description, judgment, sheriff seizure, return, exemplified record, county recorder, possession, preclusion, and appeal
Best exam move
Use the court judgment and recorded proceedings as title evidence, not neighborhood rumor or vacant-building status.
Topic
Later land claim
What to know
Section 7, eligible claimant, five years after judgment, excluded served party, appearance, heirs, assigns, petition, State's Attorney, proof, divesting county interest, disability, sale proceeds, and limitations
Best exam move
A later claim is possible only under the statute's claimant, notice, proof, and time rules. It is not an unlimited right.
Topic
Later money claim
What to know
County treasury, ten years after death, claimant, legal representation, petition, proof, court order, no interest or costs, county clerk, treasurer, and deadline
Best exam move
Keep the statutory money period distinct from the land-claim period measured after the vesting judgment.
Topic
Sale by county
What to know
County board, land after seizure, public ownership, sale, proceeds, valid later claimant, court order, title review, taxes, liens, and conveyance
Best exam move
If land was sold, a successful statutory claimant may be directed to proceeds rather than recovery of the parcel itself.
Topic
Vacant and abandoned property
What to know
Occupancy, maintenance, code violation, receivership, demolition, tax delinquency, foreclosure, adverse possession, probate, title, owner search, and no automatic escheat
Best exam move
Vacancy is a condition; escheat is a title doctrine. Never use one as proof of the other.
Topic
Unclaimed property
What to know
Dormancy, holder, missing owner, intangible property, report, State Treasurer, custody, claim, account, check, security, safe-deposit property, and statutory presumption
Best exam move
Do not apply custodial unclaimed-property rules to transfer title to an apparently vacant house.
Topic
Liens and estate debts
What to know
Mortgage, property tax, special assessment, judgment, estate claim, administration expense, priority, payoff, sale, title exception, county acquisition, and no automatic erasure
Best exam move
Do not assume escheat creates clean title. Review probate, liens, taxes, and the vesting judgment.
Topic
Transaction verification
What to know
Death certificate, will, probate case, letters of office, heirship, representative deed, court order, Escheats Act judgment, recorder, county authority, title commitment, and legal opinion
Best exam move
A person who found the keys or paid utilities cannot sign a valid deed without proven authority and title.
Topic
Broker boundaries
What to know
Title issue, seller identity, listing authority, court record, material fact, disclosure, buyer notice, attorney referral, probate counsel, title company, documentation, and no heir determination
Best exam move
Verify the signing party and refer the legal work. Brokers do not decide heirship or cure an escheat judgment.

Which distinctions produce the most mistakes?

Terms
Intestacy vs. escheat
Difference
Intestacy means a person died without a controlling will for the property. Escheat occurs only when no private person is legally entitled to take under the succession rules.
Question cue
No will versus no lawful taker.
Terms
Heir vs. legatee or devisee
Difference
An heir takes under intestacy law. A legatee or devisee takes under a valid will, with terminology depending on the gift and source.
Question cue
Statute versus will.
Terms
Illinois county escheat vs. national shorthand
Difference
National summaries often say escheated property goes to the state. Illinois section 2-1(h) specifically sends real estate to the county where it is located.
Question cue
Generic state answer versus Illinois land rule.
Terms
Escheat vs. eminent domain
Difference
Escheat resolves ownership when succession fails. Eminent domain compels acquisition for public use from an existing owner with just compensation.
Question cue
No successor versus paid public taking.
Terms
Escheat vs. tax sale
Difference
Escheat follows a failure of lawful succession. A tax sale enforces delinquent property taxes through statutory sale and redemption procedures.
Question cue
No heir versus unpaid tax.
Terms
Escheat vs. foreclosure
Difference
Escheat is a government succession right. Foreclosure enforces a mortgage or other lien through sale or title remedies after default.
Question cue
Ownership backstop versus lien enforcement.
Terms
Escheat vs. abandonment
Difference
Escheat is a legal title result. Abandonment describes conduct or condition and does not automatically transfer fee title to government.
Question cue
Court and succession versus appearance and intent.
Terms
Escheat vs. unclaimed-property custody
Difference
Escheat can vest ownership when lawful succession fails. Unclaimed-property law commonly places dormant personal property in state custody for a missing owner to claim.
Question cue
Ultimate title rule versus custodial holding.
Terms
Real property vs. personal property destination
Difference
Illinois real estate escheats to its county of location under section 2-1(h). Personal-property destination varies by physical location, residence, ancillary administration, and statutory category.
Question cue
Land situs versus classified personal asset.
Terms
Estate representative vs. heir
Difference
The representative administers estate assets under court authority. The heir is a beneficial recipient under intestacy law and may not personally control the estate during administration.
Question cue
Fiduciary administration versus beneficial succession.
Terms
Vesting judgment vs. recorded deed
Difference
An Escheats Act judgment can vest title in the county and is recorded through the statutory process. It is not a voluntary deed signed by the deceased owner.
Question cue
Judicial title versus owner conveyance.
Terms
Land-claim period vs. money-claim period
Difference
Section 7 generally measures a qualifying land claim within five years after judgment and a money claim within ten years after death, subject to its details and disability protection.
Question cue
Five after judgment versus ten after death.

The H-E-I-R-S check for escheat questions

  1. Holder and asset: identify who held title, whether the asset is real or personal property, where it is located, and whether it passes through probate.
  2. Estate plan: check a valid will, trust, beneficiary designation, joint tenancy, transfer-on-death instrument, contract, or other nonprobate path.
  3. Intestacy ladder: if no controlling transfer exists, work through the Illinois spouse and kindred classes rather than stopping at immediate family.
  4. Record and proceeding: locate the probate file, representative authority, heirship evidence, Escheats Act complaint, notice, judgment, seizure, and recording.
  5. Situs and successor: for Illinois land with no spouse or known kindred, identify the county where the parcel sits; classify personal property separately.
Question
Does a nonprobate transfer control this asset?
If yes
Follow the governing instrument
If no
Move to will and probate analysis
Question
Does a valid will dispose of the asset?
If yes
Follow the will and probate orders
If no
Apply intestacy law
Question
Is there a statutory spouse or kindred?
If yes
Distribute under 755 ILCS 5/2-1
If no
Consider escheat
Question
Is the asset Illinois real estate?
If yes
County of parcel location is the escheat recipient
If no
Classify personal property under section 2-1(h)
Question
Has a court vested county title?
If yes
Review judgment, recording, sale, and claim periods
If no
Do not assume the county can convey

How do the rules work in scenarios?

No will, but a surviving child

Scenario: An unmarried Illinois owner dies without a will and leaves one living adult child. The estate includes a house held solely in the owner's name.

  1. The owner died intestate, so section 2-1 controls the probate estate.
  2. A descendant exists and takes under the statutory order, subject to administration and valid estate obligations.
  3. Escheat is not reached merely because there is no will.

Answer: The house passes through intestate succession, not escheat.

A distant known relative

Scenario: A decedent has no spouse, descendants, parents, siblings, grandparents, or great-grandparents, but an heir search finds a legally qualifying nearest kindred under section 2-1(g).

  1. The intestacy analysis continues to nearest kindred under the statute.
  2. The existence and degree of relationship need competent proof.
  3. A legally entitled known kindred prevents the no-known-kindred condition in subsection (h).

Answer: The estate follows the nearest-kindred rule rather than escheating.

Illinois land, no spouse or known kindred

Scenario: An intestate decedent leaves no surviving spouse and no known kindred after a proper investigation. The only asset is land in Sangamon County.

  1. Section 2-1(h) applies after the succession classes fail.
  2. The asset is real estate, so its location controls the recipient.
  3. The statute sends the land to the county where it is located.

Answer: The real estate escheats to Sangamon County through the applicable process.

Residence and land location differ

Scenario: A decedent lived in Cook County but owned an Illinois parcel in Lake County. There is no surviving spouse or known kindred.

  1. Do not use the decedent's residence to locate real-estate escheat.
  2. Section 2-1(h) uses the county in which the real estate is located.
  3. Personal property would require its own classification under the same subsection.

Answer: The Illinois parcel escheats to Lake County, not Cook County.

A vacant house still has an owner

Scenario: A house has been empty for four years, its yard is overgrown, and taxes are delinquent. The record owner is alive but cannot be reached.

  1. Escheat based on intestate succession requires death and failure of lawful takers, neither of which is established.
  2. Vacancy and delinquent taxes may trigger code or tax procedures but do not transfer title by escheat.
  3. A buyer needs a title search and the correct statutory process for any tax or lien issue.

Answer: The facts do not establish escheat.

A joint tenant survives

Scenario: A deed validly created joint tenancy between two owners. One owner dies with no will and no known relatives, while the other joint tenant survives.

  1. A valid joint tenancy carries a right of survivorship.
  2. The deceased owner's interest passes to the surviving joint tenant outside ordinary intestate distribution, subject to title proof.
  3. The no-relative fact does not force this asset into escheat.

Answer: The surviving joint tenant takes the interest rather than the county by escheat.

An alleged heir appears after judgment

Scenario: County title was vested by an Escheats Act judgment. Two years later, a person who was not served and did not appear produces evidence of a qualifying heirship claim.

  1. Section 7 provides a potential petition route within its stated period for certain claimants.
  2. The claimant must prove entitlement and satisfy the notice, status, and timing rules.
  3. A broker cannot declare the judgment void or promise that the land will be returned.

Answer: The person needs prompt legal review and a statutory court petition, not a private deed from the former owner.

What are the common exam traps?

Trap
Equating no will with escheat
Correction
No will triggers intestacy. Escheat comes only after no lawful private taker exists.
Trap
Sending Illinois land automatically to the state
Correction
Section 2-1(h) sends real estate to the county where it is located.
Trap
Stopping the heir search after children and parents
Correction
Illinois succession can continue through siblings, grandparents, great-grandparents, descendants of those relatives, and nearest kindred.
Trap
Ignoring a valid will
Correction
A valid devise can control before intestacy, subject to probate rules, lapse, disclaimer, and capacity to take.
Trap
Ignoring nonprobate title
Correction
Joint tenancy, trusts, beneficiary designations, and transfer-on-death instruments can move an asset outside the intestate estate.
Trap
Treating a vacant house as escheated
Correction
Vacancy proves condition, not government title. Search the chain of title and court records.
Trap
Treating unpaid tax as escheat
Correction
Delinquent property tax follows tax-sale and redemption law, not the no-heir succession rule.
Trap
Calling foreclosure escheat
Correction
Foreclosure enforces a lien after default; escheat resolves a failure of lawful ownership succession.
Trap
Applying one destination to every asset
Correction
Classify real estate and each personal-property category under section 2-1(h).
Trap
Letting a finder list the property
Correction
Possession of keys or payment of utilities does not prove ownership or authority to convey.
Trap
Ignoring mortgages and liens
Correction
Probate administration, taxes, mortgages, claims, and title exceptions require analysis; escheat is not a magic lien release.
Trap
Assuming county title needs no court record
Correction
The Escheats Act provides a complaint, notice, judgment, seizure, and recording procedure.
Trap
Giving every later claimant unlimited time
Correction
Section 7 includes specific periods, excluded parties, proof requirements, and disability protection.
Trap
Using escheat and unclaimed-property custody as synonyms
Correction
One can vest ownership when succession fails; the other commonly safeguards dormant property for a missing owner.
Trap
Calling these official PSI questions
Correction
These are original items aligned to the public outline and current Illinois primary sources.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. What is escheat?

  1. Transfer to government when no private person is legally entitled or capable of taking
  2. A voluntary deed from seller to buyer
  3. A local zoning amendment
  4. A mortgage prepayment
Show answer and explanation

Answer: Transfer to government when no private person is legally entitled or capable of taking

Escheat prevents property from remaining without a lawful owner.

2. An Illinois owner dies without a will but leaves a surviving spouse. Does the real estate immediately escheat?

  1. No, the intestacy rules apply before escheat
  2. Yes, every intestate parcel escheats
  3. Yes, but only if taxes are current
  4. No, because death cancels title
Show answer and explanation

Answer: No, the intestacy rules apply before escheat

A statutory spouse or kindred takes before the no-known-kindred backstop.

3. Where does Illinois real estate escheat under 755 ILCS 5/2-1(h)?

  1. To the county where the land is located
  2. Always to the decedent's city
  3. Always to the federal government
  4. To the listing brokerage
Show answer and explanation

Answer: To the county where the land is located

The parcel's situs determines the county recipient for real estate.

4. Which fact by itself proves that a house has escheated?

  1. None of these facts alone
  2. The grass is overgrown
  3. The house is vacant
  4. Mail is accumulating
Show answer and explanation

Answer: None of these facts alone

Government title requires the succession facts and legal process, not outward signs of abandonment.

5. A valid joint tenant survives the decedent. What is the usual title result for that jointly held interest?

  1. It passes by survivorship rather than escheat
  2. It always goes to the county
  3. It becomes ownerless
  4. It becomes a property tax
Show answer and explanation

Answer: It passes by survivorship rather than escheat

Joint tenancy is a nonprobate transfer path when validly created and supported by title evidence.

6. Who files the Illinois Escheats Act complaint on behalf of the county?

  1. The county State's Attorney
  2. Any neighboring tenant
  3. The listing broker
  4. The mortgage appraiser
Show answer and explanation

Answer: The county State's Attorney

Section 3 assigns that filing duty when the statutory conditions are believed to exist.

7. What record can vest title to escheated land in an Illinois county?

  1. A circuit-court judgment under the Escheats Act
  2. An unverified family rumor
  3. A utility shutoff notice
  4. A broker price opinion
Show answer and explanation

Answer: A circuit-court judgment under the Escheats Act

The statutory proceeding includes notice, an opportunity to appear, judgment, seizure, and recording.

8. How is escheat different from eminent domain?

  1. Escheat follows failure of succession; eminent domain is a compensated public-use acquisition
  2. Eminent domain requires no public use
  3. Escheat is a private mortgage remedy
  4. There is no difference
Show answer and explanation

Answer: Escheat follows failure of succession; eminent domain is a compensated public-use acquisition

The government obtains property for fundamentally different reasons under the two doctrines.

9. A person claims escheated land two years after the vesting judgment and was neither served nor appearing. What is the best response?

  1. Review a possible section 7 petition immediately with qualified counsel
  2. Record a self-prepared deed from the decedent
  3. Assume every claim is automatically barred
  4. Ask a broker to decide heirship
Show answer and explanation

Answer: Review a possible section 7 petition immediately with qualified counsel

The Escheats Act provides a limited court route subject to claimant status, proof, notice, and timing.

10. Which statement about liens is most accurate when land may escheat?

  1. Title, probate claims, taxes, mortgages, and liens still require review
  2. Escheat automatically erases every recorded interest
  3. Only unrecorded interests matter
  4. A broker may ignore the title commitment
Show answer and explanation

Answer: Title, probate claims, taxes, mortgages, and liens still require review

The succession doctrine does not replace a full estate and title analysis.

How should you study this area?

Session
Session 1
Focus
Separate intestacy from escheat
Proof you are ready
Classify 20 death scenarios as will transfer, nonprobate transfer, intestacy, or possible escheat and explain why.
Session
Session 2
Focus
Build the Illinois heir ladder
Proof you are ready
Trace spouse, descendants, parents, siblings and descendants, grandparents, great-grandparents, and nearest kindred in 15 fact patterns.
Session
Session 3
Focus
Map assets to destinations
Proof you are ready
Sort 18 assets by real estate, Illinois-located personal estate, ancillary property, and other personal property, then name county or state treatment.
Session
Session 4
Focus
Trace the Escheats Act case
Proof you are ready
Put State's Attorney complaint, description, claimants, show-cause order, service, publication, appearance, trial, judgment, seizure, and recording in order.
Session
Session 5
Focus
Work title and later claims
Proof you are ready
Analyze eight files for probate authority, county judgment, land or proceeds, liens, service history, five-year period, ten-year period, and disability rule.
Session
Session 6
Focus
Run the H-E-I-R-S check
Proof you are ready
Score at least 90 percent and explain every miss through holder, estate plan, intestacy, record, situs, or successor.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about What Is Escheat? Illinois Real Estate Exam Guide

What is escheat in real estate?

Escheat is the transfer of property to government when a person dies without a valid testamentary recipient and without a person legally entitled to inherit, or in another situation where no owner is legally capable of holding the property. It prevents property from remaining ownerless.

Does Illinois real estate escheat to the state?

For the ordinary intestate rule in 755 ILCS 5/2-1(h), Illinois real estate escheats to the county where it is located when there is no surviving spouse and no known kindred. National exam shorthand often says property goes to the state, but the Illinois location rule is the more precise answer when the question asks about Illinois real estate.

Does property escheat whenever someone dies without a will?

No. Dying without a will is intestacy. Illinois intestacy law first distributes the estate through the statutory order of spouse and relatives. Escheat is the last resort only after there is no legally entitled recipient under the governing rule.

Can a distant relative prevent escheat in Illinois?

Potentially, yes. Section 2-1 continues beyond spouse, descendants, parents, siblings, grandparents, and great-grandparents to the nearest known kindred in equal degree under its rules. A family search cannot stop at immediate relatives before concluding that no heir exists.

Does a vacant or abandoned house automatically escheat?

No. Vacancy, poor condition, unpaid taxes, and apparent abandonment do not by themselves prove that the county owns the property by escheat. Title, death records, probate, heirs, liens, tax proceedings, and any Escheats Act judgment must be checked.

Is escheat the same as unclaimed property?

No. Escheat in the real-estate exam sense is the ultimate succession rule when ownership otherwise fails. Custodial unclaimed-property law generally deals with intangible or personal property held for a missing owner. Illinois section 2-1(h) itself assigns different categories of personal property to a county or the State Treasurer, so the asset type and statute matter.

Is escheat the same as eminent domain?

No. Eminent domain is a compelled taking or damaging of private property for public use with just compensation. Escheat arises because no private person is legally entitled to succeed to ownership. There is no public-project purchase from an existing owner.

Can a person later claim land that escheated to an Illinois county?

The Escheats Act provides a petition procedure and time limits for certain claimants. Section 7 generally allows an eligible person who was not served or appearing in the proceeding to claim land within five years after the vesting judgment, with special protection for minors and persons under legal disability. Real cases require immediate legal review of the exact judgment and claimant status.

What record vests escheated Illinois land in the county?

Under the Escheats Act procedure, the State's Attorney files a circuit-court complaint, interested persons receive the prescribed notice and opportunity to appear, and the court can enter a judgment vesting title in the county. Section 5 calls for a certain description and recording of the exemplified record and process after seizure.

Where is escheat tested on the Illinois broker exam?

The PSI Illinois Candidate Information Booklet effective June 24, 2026 lists escheat among government rights in land under National II.A.1, Land Use Controls. The topic also connects to intestacy, probate title, transfer, and title searches.

Are these official PSI questions or probate advice?

No. The questions are original, and the page is exam preparation based on primary sources reviewed through August 1, 2026. Determining heirs, opening an estate, selling estate property, clearing an escheat claim, or asserting a later claim requires current court records and qualified Illinois probate and title counsel.

Primary sources

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

Read our editorial and corrections process

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