California Real Estate Practice Exam

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What is the process called when the property of a person who dies intestate and with no heirs is claimed by the state?

Probate
Escheat
Eminent domain
Foreclosure

The correct answer is: Escheat

When a person dies without a valid will and without any living relatives to inherit their property, it is called being "intestate and with no heirs." In this case, the state has the right to claim the property through a legal process known as "escheat." This process is meant to prevent the property from remaining unclaimed and potentially becoming abandoned. The other options are incorrect because probate is the process of distributing a deceased person's assets according to their will, eminent domain is the government's right to take private property for public use (with fair compensation), and foreclosure is a legal process used to seize property for unpaid debts.