Voluntary Alienation
The definition of voluntary alienation in real estate is the transfer of the residency rights or deed of a property between two parties without the use of extraneous legal measures. Unlike involuntary alienation, when voluntary alienation occurs, it usually does so peacefully, without contention between the interested parties; hence the distinction between the two.
Due to the wide breadth of this term, many actions in real estate can carry this moniker. A home sale, a relocation upon the termination of a rent contract, and gifting of property to a friend or relative all can be defined as voluntary alienation. To better understand the term, let’s look at an example of voluntary alienation in real estate.
Example of Voluntary Alienation in Real Estate
Axel is a middle-aged family man working in middle management at an insurance firm. In the sixteen years since he married his high school sweetheart, Axel has had two kids, worked his way up several rungs of the corporate ladder and now owns a respectable bungalow in a nice, quiet suburb.
However all is not well here; over the years, the emotional distance between Axel and his wife has grown, and they have become less and less functional as both parents and partners. One night, their relationship reaches its tipping point. While laying in bed watching TV, Axel and his wife turn to one another, and simultaneously blurt out: “I want a divorce”.
In order to spare their children the turmoil that accompanies a rough and messy divorce, the pair agree on a no-contest parting arrangement. Axel will take 50 percent of their assets and move to a smaller, more affordable dwelling place in the city, and his wife and the children will remain at the house in which they currently reside.
As the deed is in Axel’s name, he will need to voluntarily alienate himself from the property, transferring ownership of it to his wife and putting the deed in her name.
Popular Real Estate Terms
(1) Temporary and symbolic payment showing good faith and obligating two or more individuals until a final transaction takes place. The binder is typically returned if the final agreement ...
A cooperating broker or agent defines a real estate broker who helps another broker in a private property transaction. Typically, the cooperating broker represents the seller and is ...
A legally transferable debt instrument by which the issuer agrees to pay the payee within a certain time period. Note usually pay a specified rate of interest tied to the market rate of ...
(1) Type of loan where the final payment is substantially greater than the previous payments; also termed partially amortized loan. A debt agreement might stipulate a balloon payment when ...
Earthquake insurance is the type of insurance policy that specifically covers damages to your real estate caused by seismic activities. It can refer both to the rare coverage against ...
Latin: now for then. Descriptive of actions which are performed after a deadline has elapsed, but retroactively have the same effect as if they were carried out in a timely manner. For ...
(1) Methods that involve discounting the future cash flows generated by an income property. These techniques are used primarily for valuation. (2) Methods of selecting and ranking ...
Approach to appraise rental property based on anticipated future earnings to be derived from it plus the estimated selling price at the end of he period held. ...
Landowner's legal right to the water found on his property. For example, there might be a stream of water adjacent to the land. The water might be used for irrigation or other purposes. ...

Have a question or comment?
We're here to help.