What does escheat refer to in real estate?

Escheat refers to the legal process by which property reverts to the state when an individual dies without a will and without any legal heirs. This concept is rooted in the idea that property cannot remain ownerless; therefore, the state steps in to take ownership of the property, ensuring it is properly managed or used for public benefit. This process helps prevent abandoned properties from becoming neglected and instead allows the state to reclaim them.

In this context, the concept of escheat is important in real estate because it outlines how ownership is determined when someone dies intestate (without a will) and underscores the responsibilities associated with property ownership in the event of a person's death.