Lecture Notes: Governmental Powers in Real Estate

Instructor Introduction

• Instructor: Nonia
• Channel Focus: Real estate tutorials, tips, and tools for getting a real estate license in Illinois.

Topic: Governmental Powers

• Importance: Essential understanding for the broker examination.

Overview of Governmental Powers

• Governmental powers impose limitations on property ownership rights.
• There are four key governmental powers, remembered by the acronym PETE:
  1. Police Power
  2. Eminent Domain
  3. Taxation
  4. Escheatment

1. Police Power

• Definition: Authority of the state to enact laws for preserving order, protecting public health and safety, and promoting general welfare.
• Delegation: State passes this power to local municipalities and counties via enabling acts.
• Examples:
  • Zoning ordinances
  • Building codes (e.g., waste management in home construction)
• Purpose: Ensure community order, health, safety, and welfare.

2. Eminent Domain

• Definition: Government’s right to acquire private property for public use, with fair market value compensation to the owner.
• Process: When taking property, the process is called condemnation.
• Purpose: Serve the community's good.

3. Taxation

• Perspective: Seen as a privilege of owning real estate.
• Function: Homeowners pay property taxes which fund governmental budgets.
• Consequence of Non-Payment: Risk losing home ownership if property taxes are unpaid.

4. Escheatment

• Definition: State's process to acquire property upon the owner's death if there is no will or heirs.
• State of Illinois Specific: Property goes to the county where it is located.

Conclusion

• Recap: Police Power, Eminent Domain, Taxation, and Escheatment.
• Engagement: Viewers encouraged to ask questions and suggest topics.

Closing

• Encouragement for continued study and engagement with future content.