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Simple English definitions for legal terms
collateral limitation
Read a random definition: journal entry
A quick definition of collateral limitation:
Collateral limitation is a legal term that refers to a restriction placed on property or an estate. It can mean that the duration of an estate is dependent on another event, such as an estate that lasts until a certain person turns 21. It can also refer to a provision in a lease that automatically ends the lease if the lessee defaults. Another type of collateral limitation is a special limitation, which causes an estate to end automatically and revert to the grantor upon the happening of a specified event.
A more thorough explanation:
Definition: Collateral limitation is a type of limitation that makes the duration of an estate dependent on another event, such as an estate to A until B turns 21. It is a restriction that limits the extent of an estate.
Example: A property owner grants an estate to their son, A, until A graduates from college. This is a collateral limitation because the duration of the estate is dependent on A's graduation from college.
Collateral limitation is a legal term used in property law to describe a type of limitation that restricts the extent of an estate. It is often used in the creation of wills and deeds to ensure that property is passed down in a specific way. The example provided illustrates how a collateral limitation can be used to limit the duration of an estate based on a specific event.