Which would require compensation to be paid?

Which would require compensation to be paid?

• A. police power
• B. condemnation
• C. escheat
• D. encumbrance

Answer: (B)

The main concept is that when the government takes private property for public use, it must pay just compensation. This is the essence of condemnation, the process of eminent domain. When the state needs land for projects like roads or schools, it can acquire it, but the owner is entitled to fair market value and, if appropriate, damages to any remaining property. In contrast, police power refers to regulatory actions that protect public welfare—such as zoning or health codes—and these usually do not involve paying compensation. Escheat happens when someone dies without heirs, and the property passes to the state, typically without compensation to a prior owner. An encumbrance is a claim against the property, like a lien or mortgage; it does not transfer ownership or require compensation to the owner. So the need for compensation points to condemnation.

The main concept is that when the government takes private property for public use, it must pay just compensation. This is the essence of condemnation, the process of eminent domain. When the state needs land for projects like roads or schools, it can acquire it, but the owner is entitled to fair market value and, if appropriate, damages to any remaining property.

In contrast, police power refers to regulatory actions that protect public welfare—such as zoning or health codes—and these usually do not involve paying compensation. Escheat happens when someone dies without heirs, and the property passes to the state, typically without compensation to a prior owner. An encumbrance is a claim against the property, like a lien or mortgage; it does not transfer ownership or require compensation to the owner.

So the need for compensation points to condemnation.