Tuesday, November 22, 2011

MBE Fast Fact: Rule Against Perpetuities

The Rule Against Perpetuities doesn't come up very often on the MBE, but it's important to know when it does apply so that you know whether to even consider it. The rule applies only in regards to the following interests: contingent remainders; vested remainders subject to open; options to purchase; rights of first refusal; and powers of appointment. In contrast, the rule does not apply to vested interests such as reversions, possibilities of reverter, and rights of re-entry.

For more information regarding the Rule Against Perpetuities, specifically how to analyze whether the rule has been violated once you have determined that it does in fact apply, see a previous post @ http://mbetutorial.blogspot.com/2011/06/real-property-2.html.

No comments:

Post a Comment