😀
Real Property • Restraints on Alienation
PROP#041
Legal Definition
Under a forfeiture restraint, attempted transfers forfeit the interest.
Plain English Explanation
"Forfeiture restraints" are an attempt to prevent someone from transferring their interest to someone else by threatening to take away their property if they do. In other words, a forfeiture restraint says, "I'm giving this to you, but if you ever try to give it to someone else, then I'm taking it away from you and giving it to someone else."
This is a restraint on alienation and is void.
This is a restraint on alienation and is void.
Hypothetical
Hypo 1: Oz conveyed Blackacre "to Amy in fee simple." Oz added a restriction that "In a situation where Amy attempts to transfer the land or any interest therein during her lifetime, her estate shall terminate and title shall vest in Bob." Result: Oz is attempting to deny Amy from having the right to transfer her interest in Blackacre. Unfortunately for Oz, the law doesn't like such restraints on alienation. Thus, even though it is what Oz wanted, the law will ignore it. Amy thus receives Blackacre in fee simple with no restrictions.
Related Concepts
How are restraints on alienation generally dealt with by courts?
What are the most common, valid restraints on alienation?
What is the result of a disabling restraint?
What is the result of a discriminatory restraint?
What is the result of an absolute restraint on a fee simple estate?
What is the result of a promissory restraint?
What is the result of restraints on alienation on Life Estates and Future Interests?
