Humber/Ontario Real Estate Course 1 Exam Practice

What does eminent domain refer to?

1. The right of a municipality to collect real property tax.

2. The reversion of property to the state (i.e., the government) when someone dies without a will or any legal heirs.

3. The right of individuals to divide property between heirs.

4. The government's right to expropriate property for public use.

5. The ability to transfer property through family lineage without a will.

6. The right of government to lease lands for public projects.

The correct answer is: The government's right to expropriate property for public use.

The correct answer, indicating that eminent domain refers to the government's right to expropriate property for public use, highlights a fundamental principle in property law. Eminent domain allows the government to take private property—often with compensation to the owner—for purposes deemed beneficial to the public, such as building roads, schools, or other infrastructure. This power is crucial for enabling the development of projects that serve community needs, demonstrating the balance between private property rights and the requirements of the public good. The other options describe various property-related concepts but do not accurately portray the meaning of eminent domain. For instance, the collection of real property taxes pertains to the municipal right to generate revenue, while the reversion of property to the state applies to escheat laws concerning property without heirs. Additionally, the ability to divide property between heirs, transfer property through family lineage, or lease lands for public projects does not encapsulate the expropriative power that eminent domain entails.