Police power is the inherent right of the government to regulate an individual’s conduct or property in order to protect health, safety, welfare and morals.
Examples of police power in real estate are zoning, building codes, rent control, environmental control, licensing of real estate professionals, health and safety standards and town/city planning.
As a property owner, it is important to note that police powers can restrict how you use your own land, and if you experience losses as a result of a legitimate exercise of police power, you are not entitled to compensation from the government.