§ 1229 Power To Revoke Property Grants

This law says if someone has the power to cancel or change a property deal, and they sell or borrow against that property, the original deal gets canceled for the new buyer or lender.

Key Takeaways

•If you keep the right to cancel a property deal, selling it again cancels the first deal for the new buyer.
•This only applies if the new buyer or lender pays for the property.
•The original deal stays canceled only as much as the power allows.

Example

Imagine you sell your house to your friend but keep the right to take it back. Later, you sell the same house to a stranger for money.

The original sale to your friend gets canceled for the stranger who bought it, because you used your power to take it back by selling it again.

Where a power to revoke or modify an instrument affecting the title to, or the enjoyment of, an estate in real property, is reserved to the grantor, or given to any other person, a subsequent grant of, or charge upon, the estate, by the person having the power or revocation, in favor of a purchaser or incumbrancer for value, operates as a revocation of the original instrument, to the extent of the power, in favor of such purchaser or incumbrancer. (Enacted 1872.)

This law says if someone has the power to cancel or change a property deal, and they sell or borrow against that property, the original deal gets canceled for the new buyer or lender.

Key Takeaways

•If you keep the right to cancel a property deal, selling it again cancels the first deal for the new buyer.
•This only applies if the new buyer or lender pays for the property.
•The original deal stays canceled only as much as the power allows.

Example

Imagine you sell your house to your friend but keep the right to take it back. Later, you sell the same house to a stranger for money.

The original sale to your friend gets canceled for the stranger who bought it, because you used your power to take it back by selling it again.

Key Takeaways

Example

Key Terms

References

§ 1229 Power To Revoke Property Grants

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References