RULE AGAINST RESTRAINTS ON ALIENATION Courts will invalidate some restrictions placed on the alienation of land in the grant as a matter of public policy.
A. Three Types of Restrictions
Disability A grant states that any transfers made by the grantee are of no force or effect.
Forfeiture A grant states that the grantee forfeits the land if he makes a transfer.
A grant has a covenant forbidding alienation. Remedy is either injunction or damages for breach of contract.
B. Effect of Rule The type of estate that was conveyed influences the effect of the rule.
Fee Simple If a fee simple was conveyed, all restrictions are meaningless and unenforceable.
Life Estate Disabling restraints will not be enforced, but others may be enforced.
Leaseholds Forfeiture and promissory restraints are enforceable. Disabling restraints are also likely to be enforced by most courts.