Restraint On Alienation | Propertylogy

Restraint On Alienation

By on September 25, 2018

A restraint on alienation is a limitation placed on the right of an owner to transfer property ownership.

This means that even if a deed owner has no liens on a property, such a restriction can prevent him from selling it or giving it away as a gift to a particular buyer if the buyer does not meet certain criteria.

For example, a generous owner gave the church a plot of land to build a second place of worship on the condition that the real estate is not resold for 50 years. And if sold, it should not be to anyone who is not a Christian.

However, courts are known to make judgments to throw out such unfair and unethical restraints on alienation when these cases make it to court as they are against public policy.

Because of this, it is generally accepted that such restraints are only enforceable if they are reasonable in modern society.

If you are considering placing such a condition on a sale, do take a moment to think about why a free market is what makes economies great.


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