Texas Real Estate State Practice Exam

What is the power given to regulate and control property for the health, safety, and welfare of the public?

1. Escheat

2. Taxation

3. Police Power

4. Eminent Domain

The correct answer is: Police Power

The correct answer is the power known as police power. This authority is granted to state and local governments to enact regulations that promote the health, safety, morals, and general welfare of the public. Police power allows governments to create zoning laws, building codes, and other regulations that dictate how land can be used and developed, ensuring that communities function safely and efficiently. For instance, through police power, a city might impose restrictions on certain types of businesses in residential areas to maintain a peaceful living environment. This power is essential for balancing individual property rights with the needs of the wider community. In contrast, escheat refers to the process where the state claims ownership of property when an individual dies without a will or legal heirs. Taxation is the method by which governments collect funds from property owners, which is generally intended for public services and infrastructure. Eminent domain is the government's ability to take private property for public use, with compensation provided to the property owner. While closely related to property regulation, eminent domain specifically addresses the acquisition of property rather than the broader regulation encompassed by police power.