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An owner sold a parcel of real estate to a buyer with the stipulation that the buyer was not allowed to sell alcohol from the prem- ises. The buyer sold the property 10 years later to a buyer who converted the build- ing into a convenience store that sold beer. Should the owner or owner’s heirs claim a right of re-entry, what would be the basis for the lawsuit?

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Question & Answer

Review the question and all answer choices

A

Violation of a covenant

A covenant runs with the land and is enforceable between parties, but doesn't create a right of re-entry. It's a promise to do or not do something, with damages as the typical remedy, not property reclamation.

B

Violation of a condition subsequent

Correct Answer
C

Violation of a condition precedent

A condition precedent must occur before ownership transfers or becomes effective. Here, the alcohol restriction didn't need to be fulfilled for ownership to transfer; it was a limitation on future use, not a prerequisite for transfer.

D

Violation of the statute of frauds

The statute of frauds requires certain contracts to be in writing, but this isn't about the validity of the agreement's formation. The restriction was properly established, and the issue is its violation and remedy.

Why is this correct?

B is correct because a condition subsequent creates a right of re-entry for the grantor if the specified condition is violated, which requires affirmative action to enforce. The original owner's restriction on alcohol sales fits this definition, and its violation gives them or their heirs the right to reclaim the property through legal action.

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