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MMLU / Husband and wife conveyed a part of their inherited family farm to their niece…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Husband and wife conveyed a part of their inherited family farm to their niece for consideration, but substantially below market value. They retained a reverter back to themselves, however, as follows: "RESERVATION in favor of the Grantors, their heirs and assigns, an automatic reverter, should the property conveyed herein ever be mortgaged or encumbered within the life time of either Grantor." After husband died, the niece mortgaged the property. Can the surviving wife enforce the automatic reverter putting title back in herself?

choices

  1. No, this is an unreasonable restraint on alienation.
  2. No, an automatic reverter is unenforceable.
  3. Yes, the provision can be enforced because the grantors and the grantee were blood relatives in pari mutual.
  4. Yes, the provision is enforceable because it is generally considered to be a reasonable restraint on alienation.

subject

professional_law

Discussion

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Source and history

task_id
8d449458-739f-5a86-8083-6502552f0fa7
task_key
all--test--8d449458-739f-5a86-8083-6502552f0fa7
task_revision_id
1
config / split
all / test

Official source

initial import