George owns three adjacent town houses in an upscale neighborhood. He sells one to Bernardo but gets him to promise to never sell the property to a woman or a poor person. This restriction is built into the deed George gives to Bernardo, along with a statement that the property is to revert to George if this promise is broken. Which of the following statements is true in this case?

Question

Quizplus · Accepted Answer

This restriction is not enforceable because it is against public policy. Within certain limits, a person who sells real estate may obtain the agreement of the buyer to certain restrictions on the subsequent use of the land. The validity and enforceability of such private restrictions on the use of real property depend on the purpose, nature, and scope of the restriction. If a restriction is reasonable and its purpose is not against public policy, it is enforceable. For example, a restriction that prohibits future sale of the property to a non-Caucasian is not enforceable.

George Owns Three Adjacent Town Houses in an Upscale Neighborhood