- Official section
- National II: Land Use Controls and Regulations
- Broker weight
- 5% of the national broker portion
- Expected scored items
- Government and private controls share about 5 of 100 items
Land Use Controls topic guide
Government rights in land
The PETE mnemonic is useful only if you can explain the verbs. Government regulates through police power, acquires through eminent domain, collects through taxation, and succeeds to ownerless estates through escheat.
What does this exam area cover?
Short answer: Know police power, zoning and building regulation, eminent domain, condemnation, public use, just compensation, partial takings, inverse condemnation, property taxation, ad valorem concepts, tax liens, special assessments, intestate succession, escheat, and the limits separating regulation from acquisition.
The national outline names property taxes and assessments, eminent domain, condemnation, escheat, and government controls. Illinois statutes supply state procedures, while local ordinances govern many zoning and assessment details. Exam questions usually ask you to classify the power before applying a procedure.
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What is on the official outline?
- Topic
- Police power
- What to know
- Health, safety, morals, general welfare, zoning, building codes, housing standards, fire rules, environmental regulation, subdivision controls, permits, and enforcement
- Best exam move
- Look for a rule governing how property may be used rather than a transfer of title.
- Topic
- Limits on police power
- What to know
- Constitutional due process, equal protection, authority, public purpose, reasonableness, procedural requirements, vested rights, preemption, and regulatory takings
- Best exam move
- A valid public goal does not eliminate required procedure or constitutional limits.
- Topic
- Eminent domain authority
- What to know
- Authorized condemning body, public use or purpose, necessity, full or partial interest, fee, easement, air rights, subsurface rights, and statutory limits
- Best exam move
- Ask who is taking what interest for which authorized public purpose.
- Topic
- Condemnation process
- What to know
- Appraisal, offer or negotiation, petition, notice, hearing, valuation date, deposit, possession, trial, award, appeal, transfer, and project-specific procedure
- Best exam move
- Condemnation is the process; eminent domain is the underlying power.
- Topic
- Just compensation
- What to know
- Fair market value concepts, highest and best use, whole taking, part taken, damage to remainder, benefits, fixtures, leaseholds, liens, and allocation among interests
- Best exam move
- Compensation addresses the property interest taken, not the owner's sentimental value.
- Topic
- Partial and temporary takings
- What to know
- Road strips, utility easements, construction easements, access changes, remainder value, severance damage, special benefits, duration, and restoration
- Best exam move
- Value both the acquired interest and legally compensable effect on what remains.
- Topic
- Inverse condemnation
- What to know
- Owner-initiated claim, physical occupation, flooding, loss of access, regulatory effect, causation, government action, protected interest, and compensation
- Best exam move
- The owner files because the government did not use ordinary condemnation.
- Topic
- Property taxation
- What to know
- Ad valorem tax, assessment, equalization, exemptions, levy, rate, tax bill, due date, delinquency, lien priority, sale, redemption, and local taxing districts
- Best exam move
- Separate the assessed value from the tax rate and the resulting bill.
- Topic
- Tax liens
- What to know
- Attachment, priority, delinquency, interest, penalties, tax sale, certificate, redemption, notice, deed, title consequences, and due diligence
- Best exam move
- Do not confuse a lien against land with immediate government ownership.
- Topic
- Special assessments
- What to know
- Public improvement, special benefit, benefited parcels, assessment roll, apportionment, notice, hearing, installments, lien, payoff, and disclosure
- Best exam move
- Look for a defined improvement benefiting a limited group of properties.
- Topic
- Intestacy before escheat
- What to know
- Death without effective will, probate estate, heirs, spouse, descendants, kindred, statutory priority, nonprobate assets, debts, administration, and title
- Best exam move
- No will does not mean no heirs; apply intestate succession first.
- Topic
- Escheat
- What to know
- No valid devise, no statutory heir or taker, state succession, probate finding, title transfer, later claims where allowed, and distinction from abandoned property
- Best exam move
- Choose escheat only when death and absence of legal takers are both present.
Which distinctions produce the most mistakes?
- Terms
- Police power vs. eminent domain
- Difference
- Police power regulates use for public welfare. Eminent domain acquires a private property interest for public use with required compensation.
- Question cue
- Restriction versus acquisition.
- Terms
- Eminent domain vs. condemnation
- Difference
- Eminent domain is the legal power to take. Condemnation is the procedure used to exercise it.
- Question cue
- Authority versus lawsuit or statutory process.
- Terms
- Condemnation taking vs. unsafe-building condemnation
- Difference
- One acquires property through eminent domain. The other identifies dangerous or unfit property under regulatory authority.
- Question cue
- Public acquisition versus safety enforcement.
- Terms
- Direct vs. inverse condemnation
- Difference
- Government starts direct condemnation. The owner starts inverse condemnation after alleging a taking without the ordinary process.
- Question cue
- Government petition versus owner claim.
- Terms
- Whole vs. partial taking
- Difference
- A whole taking acquires the complete parcel or interest. A partial taking acquires less and may affect the remainder's value.
- Question cue
- Entire property versus strip or easement.
- Terms
- Property tax vs. special assessment
- Difference
- Property tax funds general local functions. A special assessment allocates cost of a specific improvement to specially benefited property.
- Question cue
- General revenue versus particular benefit.
- Terms
- Assessment vs. levy
- Difference
- Assessment determines taxable value under the system. Levy is the amount a taxing body seeks to raise.
- Question cue
- Property value step versus government revenue request.
- Terms
- Escheat vs. intestacy
- Difference
- Intestacy means dying without an effective will for some or all probate property. Escheat occurs only when succession law finds no legal taker.
- Question cue
- No will versus no heirs.
- Terms
- Escheat vs. tax sale
- Difference
- Escheat follows death without a legal taker. A tax sale follows delinquent property taxes and statutory enforcement.
- Question cue
- Succession backstop versus debt collection.
How should you classify a government-rights question?
- Identify the government action: regulating use, acquiring an interest, charging revenue, funding a special improvement, or receiving an estate.
- Match the action to police power, eminent domain, taxation, special assessment, or escheat.
- Name the property interest affected, the owner, the public body, and any tenant, lender, or easement holder.
- Check the triggering facts and procedure: ordinance, notice, hearing, condemnation petition, assessment, delinquency, probate, or succession.
- Ask whether compensation, a tax payment, a special benefit, or inheritance priority is the core issue.
- Separate a constitutional principle from the state or local procedure that implements it.
- Choose the narrow rule that explains every fact without merging unrelated government powers.
- Power
- Police power
- Government action
- Regulates use
- Exam anchor
- Health, safety, welfare
- Power
- Eminent domain
- Government action
- Acquires private interest
- Exam anchor
- Public use and compensation
- Power
- Taxation
- Government action
- Raises public revenue
- Exam anchor
- Ad valorem tax and lien
- Power
- Special assessment
- Government action
- Funds benefiting improvement
- Exam anchor
- Limited benefited parcels
- Power
- Escheat
- Government action
- Takes as successor
- Exam anchor
- Death and no legal taker
- Power
- Inverse condemnation
- Government action
- Responds to owner taking claim
- Exam anchor
- No ordinary condemnation filed
How do the rules work in scenarios?
Road-widening strip
Scenario: A public body acquires a 12-foot strip from a commercial parcel for an authorized road project and pays for the strip and compensable damage to the remainder.
- The government acquires a private property interest.
- The project serves an authorized public purpose.
- Only part of the parcel is taken, so remainder effects matter.
Answer: This is a partial taking through eminent domain, carried out by condemnation.
New setback rule
Scenario: A municipality adopts a generally applicable setback rule under its zoning authority. An owner loses one possible building layout but keeps economically usable property.
- The government regulates development rather than acquiring title.
- A reduction in preferred use does not automatically require compensation.
- Validity and any taking claim depend on authority, procedure, and facts.
Answer: This is primarily an exercise of police power, not automatically eminent domain.
Street improvement charge
Scenario: Only parcels abutting a rebuilt streetscape are charged under an assessment roll because the project specially benefits those parcels.
- The charge relates to a named public improvement.
- A limited group of properties receives the asserted special benefit.
- That pattern differs from general property tax revenue.
Answer: The charge is a special assessment.
Death without a will
Scenario: An Illinois owner dies without a will. A legally recognized heir survives.
- The estate is intestate.
- Succession law identifies a legal taker.
- Escheat is used only when no entitled taker exists.
Answer: The property passes under intestate succession rather than escheating merely because there is no will.
What are the common exam traps?
- Trap
- Police power always requires compensation.
- Correction
- Valid regulation generally does not require payment unless it crosses a constitutional taking line.
- Trap
- Condemnation and eminent domain are identical terms.
- Correction
- Eminent domain is the power; condemnation is the exercise process.
- Trap
- Only fee title can be condemned.
- Correction
- Government may acquire a lesser interest such as an easement or temporary construction right.
- Trap
- A public project eliminates the just-compensation requirement.
- Correction
- Public use supports authority, while compensation remains a separate requirement.
- Trap
- Inverse condemnation is filed by the government.
- Correction
- The affected owner brings the claim after alleging a taking without normal condemnation.
- Trap
- Assessed value is the annual tax bill.
- Correction
- Assessed value is one input; rates, equalization, exemptions, and levies affect the bill.
- Trap
- A special assessment applies equally to every taxpayer.
- Correction
- It is tied to property specially benefited by a particular improvement.
- Trap
- A tax lien means the state immediately owns the parcel.
- Correction
- The lien secures delinquent tax; ownership changes only through required statutory steps.
- Trap
- Dying without a will causes automatic escheat.
- Correction
- Intestate heirs take before escheat is considered.
- Trap
- Escheat and abandoned-property custody are the same.
- Correction
- Escheat concerns succession with no legal taker; unclaimed property follows a different statutory system.
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. Which government power supports a zoning ordinance?
- Escheat
- Police power
- Eminent domain
- Intestate succession
Show answer and explanation
Answer: B
Zoning regulates land use to advance public health, safety, and welfare under police power.
2. What is the legal process used to exercise eminent domain?
- Escheat
- Condemnation
- Dedication
- Adverse possession
Show answer and explanation
Answer: B
Condemnation is the procedure for exercising the taking power.
3. Who usually initiates inverse condemnation?
- The affected property owner
- The listing broker
- The local assessor
- A title insurer
Show answer and explanation
Answer: A
An owner brings the claim after alleging government action took a protected interest without the ordinary process.
4. A sewer extension charge applies only to parcels specially benefited by the project. What is it?
- General property tax
- Special assessment
- Escheat
- Police-power license
Show answer and explanation
Answer: B
A project-specific charge allocated to benefited parcels is the classic special-assessment pattern.
5. An owner dies intestate and leaves a surviving heir recognized by law. What happens before escheat?
- The government condemns the parcel
- The lender takes title
- Intestate succession determines the heir's share
- The assessor sells the parcel
Show answer and explanation
Answer: C
Escheat is a last resort. Legally entitled heirs take under intestate succession first.
How should you study this area?
- Session
- 1. PETE classification
- Focus
- Police power, eminent domain, taxation, escheat, purposes, verbs, and core limits
- Proof you are ready
- Classify twenty one-sentence government actions.
- Session
- 2. Taking power
- Focus
- Authority, public use, interests acquired, condemnation procedure, possession, and award
- Proof you are ready
- Map a direct-condemnation sequence without notes.
- Session
- 3. Compensation
- Focus
- Market value, partial taking, remainder, severance damage, temporary interests, and allocation
- Proof you are ready
- Explain the compensable interest in six scenarios.
- Session
- 4. Regulation limits
- Focus
- Police power, due process, equal protection, physical taking, regulatory taking, and inverse condemnation
- Proof you are ready
- Distinguish regulation from acquisition in ten examples.
- Session
- 5. Taxes and assessments
- Focus
- Assessment, levy, rate, tax bill, lien, delinquency, tax sale, redemption, and special benefit
- Proof you are ready
- Sort twelve facts between general tax and special assessment.
- Session
- 6. Escheat
- Focus
- Will, intestacy, heirs, probate estate, succession, escheat, tax sale, and unclaimed property distinctions
- Proof you are ready
- Score at least 90% and explain why each wrong option fails.
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.
Government Rights in Land FAQ
What are the four government powers over real property?
The usual real estate exam mnemonic is PETE: police power, eminent domain, taxation, and escheat. Police power regulates, eminent domain takes for public use with required compensation, taxation raises public revenue, and escheat prevents property from remaining ownerless after death without a valid taker.
What is police power in real estate?
Police power is government's authority to regulate for public health, safety, morals, and general welfare. Zoning, building codes, occupancy rules, environmental standards, and subdivision regulation are common land-related examples.
What is eminent domain?
Eminent domain is an authorized government's power to take private property for public use, subject to constitutional and statutory requirements including just compensation. The authority can reach an entire parcel or a lesser property interest.
What is the difference between eminent domain and condemnation?
Eminent domain is the power. Condemnation is the legal procedure used to exercise that power and determine issues such as authority and compensation. An unsafe-building condemnation is a different use of the word.
What is inverse condemnation?
Inverse condemnation is an owner's claim that government action effectively took or damaged a protected property interest without completing the usual condemnation process or paying required compensation.
Is every land-use regulation a compensable taking?
No. Government may regulate property under police power without owing compensation merely because the rule reduces value. A regulation can become a compensable taking in particular circumstances, but the constitutional analysis is fact-specific.
How is a special assessment different from property tax?
Property tax broadly supports local public services. A special assessment charges properties specially benefited by a particular improvement, such as a qualifying street or sewer project, under the governing law.
What is escheat?
Escheat is property passing to the state when a person dies without an effective testamentary disposition and no legally entitled heirs or other takers exist. It is not a tax foreclosure or government purchase.
Does escheat occur whenever someone dies without a will?
No. Intestacy law first identifies heirs and their shares. Escheat is the backstop when no person or entity is legally entitled to inherit.
Are these questions copied from PSI?
No. Every practice item is original and aligned to the public land-use-controls outline.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- Congress.gov Constitution Annotated, Fifth Amendment
- Congress.gov Constitution Annotated, overview of takings
- Illinois Eminent Domain Act
- Illinois Department of Revenue, property tax information
- Illinois Probate Act of 1975
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.