George Owns Three Adjacent Town Houses in an Upscale Neighborhood

question 28

Multiple Choice

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?

• A) This restriction is enforceable because it is built into the deed.
• B) This restriction is enforceable because it does not effectively prevent the sale of the property to anyone else.
• C) This restriction is not enforceable because it is against public policy.
• D) This restriction is not enforceable because private restrictions only apply to the size and cost of the house.

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Definitions:

Governmental Intervention

Actions taken by government bodies to influence or directly control activities in various sectors.

India

India is a South Asian country, the seventh-largest by land area, second-most populous, and the world's largest democracy, known for its diverse culture, languages, and history.

UPA

Uniform Partnership Act, a model law that governs partnership formation and operation in the United States to maintain consistency across states.

Liquidated Assets

Assets that have been converted into cash or cash equivalents, often in the process of paying off debts.