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50. To whom should the condemnation proceeds be paid?
There are no applicable statutes.
Four years later, the friend opened a tavern that sold alcoholic beverages on the property. Six months after the opening, while the friend continued to operate the tavern, the municipality in which the property is located validly condemned the property.
A grantor conveyed a commercial property to a friend «so long as alcoholic beverages are not sold on the property, and if alcoholic beverages are sold on the property, the estate is to end at once.» The friend took possession of the property.
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A is incorrect. While it is true that both the friend and the grantor had an interest in the property, when the defeasible event occurred (selling alcoholic beverages), the friend's fee simple determinable immediately terminated, and title vested in the grantor, who had a possibility of reverter.
B is incorrect. Even though the friend was in physical possession of the property on the date of the condemnation, legal title to the property was in the grantor and therefore possession is not relevant to determining who receives the condemnation proceeds.
C is incorrect. The limitation contained in the deed, prohibiting the sale of alcohol, is neither an invalid restraint nor against public policy. It is, however, a defeasible event that will lead to reverter.