What happens to a person’s property when they die without a will and without legal heirs?

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Get ready for the Gold Coast Real Estate Exam with our study tools. Use flashcards, multiple choice questions, and detailed explanations to boost your confidence and pass with ease!

When a person dies without a will and has no legal heirs, their property is subject to the legal principle known as "escheat." This means that the property essentially reverts to the state, as there are no identifiable heirs to inherit it. The state takes over ownership of the deceased's assets to ensure they are managed appropriately according to the law.

Escheat is rooted in the notion that property should not remain ownerless. In this situation, if there are no heirs or anyone who can legally claim the inheritance, the state becomes the default beneficiary. This process is formalized by state laws, which outline how properties are handled when there are no direct successors to inherit them.

The other options do not accurately reflect the legal outcomes under these circumstances. Properties do not go into limbo as there are procedures for the government to take ownership. They are not divided among relatives if there are none, and there is no requirement for the property to be sold at auction if the state becomes the owner through escheat.

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