Understanding Restraint on Alienation: Legal Implications and Insights

Definition & Meaning

A restraint on alienation is a legal clause in real property transactions that prevents the new owner from selling or transferring their interest in the property. Such clauses are often considered contrary to public policy, which generally supports the right of property owners to freely transfer their assets. However, some restrictions may be deemed reasonable, such as a right of first refusal or land conservation agreements.

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Legal Use & context

This term is primarily used in real estate law. It appears in property deeds and contracts, where it may restrict the transfer of property rights. Legal practitioners often encounter restraints on alienation in various contexts, including residential and commercial real estate transactions. Users can manage some aspects of these transactions using legal templates available through services like US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A property owner conveys their land to a family member but includes a clause that prohibits them from selling the property for ten years. This clause may be considered a restraint on alienation.

Example 2: A conservation easement that restricts development on a piece of land can be upheld as a reasonable restraint on alienation, as it serves a public interest in preserving natural resources.

State-by-state differences

Examples of state differences (not exhaustive):

State	Notes
California	Restrictive covenants based on race are void under state law.
Florida	Reasonable restraints on alienation may be upheld if they serve a legitimate purpose.
New York	Restraints on alienation are generally disfavored but may be enforceable if reasonable.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Difference
Restrictive Covenant	A clause that limits how property can be used.	Restrictive covenants may allow for certain uses, while restraints on alienation prohibit transfer entirely.
Easement	A right to use another person's property for a specific purpose.	Easements do not restrict ownership transfer but allow limited use of the property.

Common misunderstandings

What to do if this term applies to you

If you encounter a restraint on alienation in a property transaction, consider the following steps:

Review the clause carefully to understand its implications.
Consult with a real estate attorney if you have questions about the legality or enforceability of the clause.
Explore US Legal Forms for templates that can help you draft or modify property agreements.

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Quick facts

Typical duration: Varies based on the specific clause.
Jurisdiction: Primarily applicable in real estate law.
Possible penalties: Enforceable clauses may lead to legal disputes or restrictions on property use.