Public Policy Limitations

What are the public policy limitations on property ownership?

These are rules that prevent a grantor from imposing restrictions on property that violate society's interest in keeping property usable, transferable, and free from unfair control

Why do courts sometimes void restrictions on property

Because such restrictions can violate public policy especially when they excessively limit ownership rights or personal freedom

What is a restraint on alienation

A restriction on transferring property. It prevents the owners right to sell

Are restraints on alienation generally valid

No. Absolute restraints on a fee simple are usually void as against public policy. Property law discourages tying the hands of future generations

What is a disabling restraint?

total prohibition on the transfer of the property interest by its owner; always void

What is a forfeiture restraint?

A restraint that leads to a forfeiture of title if the transferee attempts to transfer her interest. Usually void on a fee simple but can be valid for life estates or future interests

What is a promissory restraint?

A promise by the property holder not to transfer the property. Can be enforced by injunction or damages.

Valid if used on a life estate and reasonable in scope

Are all restraints on alienation invalid?

No. Partial restraints may be valid if they serve a reasonable, lawful purpose and are limited in duration or scope.

Partial restraint on alienation

A restriction that only limits transfer, for example requiring consent or restricting sale for a short period

What do courts consider when deciding if a restraint is unreasonable?

- Whether is out of spite

-Lacks a legit purpose

-Is unlimited in duration

-Restricts sale to too many people or too broadly

What is the general rule about a grantor's freedom vs. public policy

control through a will is limited- You cannot use property law to harm others or pursue personal vendettas

What is restraint on marriage

A restriction conditioning inheritance or ownership on whether or whom a person marries

What are the reasonable limitations of restraint of marriage?

If its a partial restraint that imposes reasonable conditions like marrying within a certain faith

What are unreasonable restraints interfering with family harmony

Restrictions that cause family conflict or try to control personal relationships- for example, forcing certain family members to live together or excluding relatives from property use