The Rule Against Perpetuities (RAP) Remains New York’s Strangest Real Property Law
August 27, 2013
By: Kevin V. Recchia
Reposted with permission from Super Lawyers Magazine / Upstate New York 2013
"What's the Strangest Law Still on the Books in Your Practice Area?"
The Rule Against Perpetuities (RAP) Remains New York’s Strangest Real Property Law
The RAP, which dates back to 15th-century England, forbids transferring future real property estates that may vest 21 years after the death of some life in being at the creation of the estate. It’s intended to prevent unreasonable restraints upon alienation.
In 1983, my professor told us, “No one understands this rule; you probably won’t use it.” However, because New York remains one of the few states continuing to enforce the RAP as originally applied, I’m not so lucky.
The RAP’s effect can be baffling: A purchase option exercisable within 22 years violates the RAP because, theoretically, some calamity could extinguish the human race in less than 21 years. Moreover, linking the deadline to a specific person’s life might result in a future estate’s sudden termination, or an option-exercise deadline becoming unidentifiable.
Some states have abolished the RAP, some simply require estates to vest within a specific time frame, and some have adopted a “wait and see” approach. Let’s hope New York simplifies the RAP before the next killer asteroid hits, plus 21 years.
(page 5 excerpt)
Click here to link to Super Lawyers Magazine / Upstate New York 2013.
