Final answer:
A municipal government can escheat a property when the owner dies without a will and there are no identifiable heirs. Escheat ensures the property is transferred to the state in the absence of legal claimants.
Step-by-step explanation:
A municipal government can escheat a property in the following situation: The owner of the property dies without a will and there are no identifiable heirs. Escheat is a common law doctrine that transfers the property of a person who died without heirs to the state. It serves as a way for property to be reallocated in the absence of a will or clear succession. This does not apply to properties in hazardous zones or cases where a party illegally inhabits someone else's property, as these situations are handled differently under the law.