Alby v. Banc One Financial

A condition in a deed that constitutes an unreasonable restraint on alienation is void. But the condition must be shown to be an actual “restraint” and also to be “unreasonable.” We hold that the conveyance of a fee simple determinable subject to an automatic reverter if the grantee should encumber the property during the grantor’s lifetime is neither a restraint on alienation nor unreasonable when freely bargained for by the parties.

This case concerns a piece of land worth in excess of $100,000 that was conveyed within the family for $15,000. The real estate contract and deed, both of which…