10. Restraints on Alienation

Question 1

What type of interest may a restraint on alienation become void?

Answer 1

Legal interest

- NOT equitable interest

Question 2

What is the purpose of the common law Rule against Restriction on Alienation?

Answer 2

Prevent property from being tied up and taken out of commerce

Question 3

What are the types of restraints?

Answer 3

Disabling restraint (VOID)
- Prevent alienation

Forfeiture restraint
- Alienation => Forfeiture of interest

Promissory restraint

• Transferor’s consent => Alienation
• Breach of covenant => Injunction/Damages

Question 4

What type of restraints are allowed on (vested remainders in) fee simples?

Answer 4

Partial restraints

• Limited time + reasonable purpose
• Forfeiture/Promissory restraints

Question 5

What type of restraints are not allowed on (vested remainders in) fee simples?

Answer 5

Total restraints (VOID)
- Disabling/Forfeiture/Promissory restraints

Discriminatory restraints (VOID)

• 14A
• Fair Housing Act

Question 6

What type of restraints are allowed on life estates?

Answer 6

Forfeiture restraints

Promissory restraints

Question 7

What type of restraints are not allowed on life estates?

Answer 7

Disabling restraints

Question 8

What type of restraints are allowed on condominiums?

Answer 8

Forfeiture restraints

Promissory restraints