Rule Against Restraints on Alienation

Question 1

Types of Restraints on Alienation

Answer 1

1. Disabling: Absolute ban on transfer = void
2. Forfeiture: Attempted transfer forfeits interest = valid if reasonable/time limited
3. Promissory: Attempted transfer breaches covenant = valid if reasonable/tie limited
4. Discriminatory: Based on race, religion, ethnicity = void

Question 2

Restraints on Life Estate

Answer 2

Forfeiture and promissory restraints on life estates are valid, but disabling restraints are void.

Question 3

Restraints on Future Interests

Answer 3

Restraints on vested future interests generally are valid to the extent that restraints on present interests of the same type are valid.

Question 4

Other Valid Restraints

Answer 4

Reasonable restrictions in commercial transactions

Reasonable options and rights of first refusal

Restrictions on assignment and sublease of leaseholds (I.e., requiring landlords consent)