SECTIONS 885.010-885.070 - California Statutes

CIVIL CODE

SECTION 885.010-885.070

885.010. (a) As used in this chapter:
(1) "Power of termination" means the power to terminate a fee
simple estate in real property to enforce a restriction in the form
of a condition subsequent to which the fee simple estate is subject,
whether the power is characterized in the instrument that creates or
evidences it as a power of termination, right of entry or reentry,
right of possession or repossession, reserved power of revocation, or
otherwise, and includes a possibility of reverter that is deemed to
be and is enforceable as a power of termination pursuant to Section
885.020.
(2) "Power of termination" includes the power created in a
transferee to terminate a fee simple estate in real property to
enforce a restriction on the use of the real property in the form of
a limitation or condition subsequent to which the fee simple estate
is subject, whether the power is characterized in the instrument that
creates or evidences it as an executory interest, executory
limitation, or otherwise, and includes the interest known at common
law as an executory interest preceded by a fee simple determinable.
(b) A power of termination is an interest in the real property.
(c) For the purpose of applying this chapter to other statutes
relating to powers of termination, the terms "right of reentry,"
"right of repossession for breach of condition subsequent," and
comparable terms used in the other statutes mean "power of
termination" as defined in this section.

885.015. This chapter does not apply to any of the following:
(a) A power of termination conditioned upon the continued
production or removal of oil or gas or other minerals.
(b) A power of termination as to separately owned improvements or
fixtures conditioned upon the continued leasehold or possessory
interest in the underlying land.

885.020. Fees simple determinable and possibilities of reverter are
abolished. Every estate that would be at common law a fee simple
determinable is deemed to be a fee simple subject to a restriction in
the form of a condition subsequent. Every interest that would be at
common law a possibility of reverter is deemed to be and is
enforceable as a power of termination.

885.030. (a) A power of termination of record expires at the later
of the following times:
(1) Thirty years after the date the instrument reserving,
transferring, or otherwise evidencing the power of termination is
recorded.
(2) Thirty years after the date a notice of intent to preserve the
power of termination is recorded, if the notice is recorded within
the time prescribed in paragraph (1).
(3) Thirty years after the date an instrument reserving,
transferring, or otherwise evidencing the power of termination or a
notice of intent to preserve the power of termination is recorded, if
the instrument or notice is recorded within 30 years after the date
such an instrument or notice was last recorded.
(b) This section applies notwithstanding any provision to the
contrary in the instrument reserving, transferring, or otherwise
evidencing the power of termination or in another recorded document
unless the instrument or other recorded document provides an earlier
expiration date.

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.

885.050. A power of termination shall be exercised only by notice
or by civil action and, if the power of termination is of record, the
exercise shall be of record. The notice shall be given, and any
civil action shall be commenced, within five years after breach of
the restriction to which the fee simple estate is subject, or such
longer period as may be agreed to by the parties by a waiver or
extension recorded before expiration of that period.

885.060. (a) Expiration of a power of termination pursuant to this
chapter makes the power unenforceable and is equivalent for all
purposes to a termination of the power of record and a quitclaim of
the power to the owner of the fee simple estate, and execution and
recording of a termination and quitclaim is not necessary to
terminate or evidence the termination of the power.
(b) Expiration of a power of termination pursuant to this chapter
terminates the restriction to which the fee simple estate is subject
and makes the restriction unenforceable by any other means,
including, but not limited to, injunction and damages.
(c) However, subdivision (b) does not apply to a restriction for
which a power of termination has expired under this chapter if the
restriction is also an equitable servitude alternatively enforceable
by injunction. Such an equitable servitude shall remain enforceable
by injunction and any other available remedies, but shall not be
enforceable by a power of termination. This subdivision does not
constitute a change in, but is declaratory of, the existing law.
However, nothing in this subdivision shall be construed to make
enforceable any restriction prohibited or made unenforceable by other
provisions of law, including Section 53.

885.070. (a) Subject to Section 880.370 (grace period for recording
notice) and except as otherwise provided in this section, this
chapter applies on the operative date to all powers of termination,
whether executed or recorded before, on, or after the operative date.
(b) If breach of the restriction to which the fee simple estate is
subject occurred before the operative date of this chapter and the
power of termination is not exercised before the operative date of
this chapter, the power of termination shall be exercised, or in the
case of a power of termination of record, exercised of record, within
the earlier of the following times:
(1) The time that would be applicable pursuant to the law in
effect immediately prior to the operative date of this chapter.
(2) Five years after the operative date of this chapter.
(c) As used in this section, "operative date" means the operative
date of this chapter as enacted or, with respect to any amendment of
a section of this chapter, the operative date of the amendment.