What does escheat refer to in real estate?

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Escheat refers to the legal process where property reverts to the state when an individual dies without a valid will and there are no heirs to inherit the property. This process is in place to ensure that unclaimed or abandoned property is managed by the state rather than left in limbo. When a person passes away without any legal heirs or a will, the government steps in to take ownership of the property, which may be sold or used for state purposes. This concept helps prevent property from becoming ownerless, ensuring that it ultimately serves the community through public benefit.

The other options do not accurately define escheat. The transfer of property ownership would refer to various methods of conveying title, but it doesn't involve the state reclaiming property. An encumbrance relates to claims or liabilities against the property, such as mortgages or liens, which are separate from the state's interest in unclaimed property. Lastly, a tax process on purchased land pertains to taxation issues rather than the transfer of ownership or abandonment of property.

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