Which restraints on alienation are valid under modern law?

Which restraints on alienation are valid under modern law?

• A. Restraints must be either absolute or unlimited
• B. Restraints are always invalid
• C. Restraints limited to a reasonable time and purpose are valid
• D. Restraints are valid if they benefit the grantor

Answer: (C)

Restraints on alienation are only acceptable when they are reasonable in both time and purpose. Courts disfavor attempts to prohibit transfer altogether, but they will allow a restriction if it serves a legitimate objective and isn’t overly broad. That means a restraint limited to a reasonable duration and aimed at a legitimate purpose (like maintaining a planned community or protecting a specific use) is allowed. Perpetual or unlimited restraints invade the buyer’s ability to transfer and are usually void. So the best answer reflects that restraints limited to a reasonable time and purpose are valid. The other options fail because absolute or unlimited restraints are not permitted, restraints aren’t categorically invalid, and a restraint merely benefiting the grantor doesn’t align with the general public-policy stance that transfers shouldn’t be unduly restricted.

Restraints on alienation are only acceptable when they are reasonable in both time and purpose. Courts disfavor attempts to prohibit transfer altogether, but they will allow a restriction if it serves a legitimate objective and isn’t overly broad. That means a restraint limited to a reasonable duration and aimed at a legitimate purpose (like maintaining a planned community or protecting a specific use) is allowed. Perpetual or unlimited restraints invade the buyer’s ability to transfer and are usually void.

So the best answer reflects that restraints limited to a reasonable time and purpose are valid. The other options fail because absolute or unlimited restraints are not permitted, restraints aren’t categorically invalid, and a restraint merely benefiting the grantor doesn’t align with the general public-policy stance that transfers shouldn’t be unduly restricted.