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Real Property • Restraints on Alienation
PROP#043
Legal Definition
All absolute restraints on fee simple estates are void, but restraints for a limited time and reasonable purpose may be upheld.
Plain English Explanation
Any attempt to prevent someone from ever transferring their property interest to another person is automatically void. Such examples are disabling restraints, forfeiture restraints, and promissory restraints.
However, restraints that restrict the ability to transfer an interest in property for a limited period of time will sometimes be okay.
However, restraints that restrict the ability to transfer an interest in property for a limited period of time will sometimes be okay.
Hypothetical
Hypo 1: Amy owns a beautiful beach house that she spends most of the year at. She'd like to earn some extra money to travel so she offers to sell 50% of her interest in her beach house to her brother, Bob. Amy includes in the deed to Bob a covenant that states: "During their joint lifetimes, both parties promise to not convey their interest to any third party without the consent of the other party." Result: Amy is attempting to limit Bob's right to transfer his 50% interest in the beach house through a promissory restraint. Though promissory restraints are generally void, this one is limited only to the lifetime of Bob. Further, it is for the reasonable purpose that Amy doesn't want to have to live with a stranger in her beach house. As such, this limited restraint will likely be upheld by the courts.
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 a forfeiture restraint?
What is the result of a promissory restraint?
What is the result of restraints on alienation on Life Estates and Future Interests?
