California Codes, Civil Code - CIV, Division 2 — Property, Part 2 — Real or Immovable Property, Title 5 — Marketable Record Title, Chapter 5 — Powers of Termination, Section 885.040
(a) If a power of termination becomes obsolete, the power expires.
(b) As used in this section, a power of termination is obsolete if any of the following circumstances applies:
(1) The restriction to which the fee simple estate is subject is of no actual and substantial benefit to the holder of the power.
(2) Enforcement of the power would not effectuate the purpose of the restriction to which the fee simple estate is subject.
(3) It would be otherwise inequitable to enforce the power because of changed conditions or circumstances.
(c) No power of termination shall expire under this section during the life of the grantor if it arises from a grant by a natural person without consideration to a public entity or to a society, corporation, institution, or association exempt by the laws of this state from taxation.
Notes
Establishes that a power of termination expires when it becomes obsolete because the restriction provides no actual substantial benefit, enforcement would not serve its purpose, or changed conditions make enforcement inequitable. The rule does not cause expiration during a natural-person grantor’s lifetime for a gratuitous grant to a public entity or qualifying tax-exempt organization.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 885.040 | https://laws.lexinter.net/codes/california/civil-code/division-2/part-2/title-5/chapter-5/section-885-040