Maryland Home Improvement PSI Practice Exam 2026 – Comprehensive Test Prep

Escheat refers to the process by which property reverts back to the state when an individual dies without any legal heirs or a valid will. This legal principle ensures that unclaimed property does not remain in limbo, but rather is used for the benefit of the state and its residents. When a property owner passes away and there are no heirs to inherit the property, the government takes control to manage the property and possibly use its value for public benefit.

The other scenarios, such as the seizure of property for tax liens or condemnation for public use, involve different legal processes focused on satisfying debts or public needs rather than the transfer of ownership due to a lack of heirs. Similarly, failing to clean up toxic waste involves environmental regulations and liabilities rather than property ownership transitioning to the state. Understanding escheat is crucial for comprehending property law and the responsibilities of property ownership.