Real Property - Rap

Front 1

Rule against perpetuities (RAP) -- which estates does it apply to?

Back 1

Only to contingent remainders, executory interests, and certain vested remainders subject to open.

NOT to future interests in O, or to indefeasibly vested remainders, or to vested remainders subject to complete defeasance.

NB: if RAP applies, just strike the part that violates it; this may create a fee simple determinable in a transferee, or it could create a reversion in O.

Exception: A gift shifting from one charity to another will not violate the RAP. Example: "To the American Red Cross, so long as the premises are used for Red Cross purposes, and if they cease to be so used, then to the YMCA."

Front 2

RAP and open classes

Back 2

Bad as to one, bad as to all.

If a gift to an open class that is conditioned on the members surviving to an age beyond 21 violates the common law RAP--to be valid it must be shown that the condition precedent to _every_ class member's taking will occur within the perpetuities period, otherwise the entire class gift is void.

Example: "To A for life, then to such of A's children as live to attain the age of 30." A is alive and has two children, B and C, ages 35 and 40. B and C's vested remainders subject to open are VOIDED by the common law RAP.

Front 3

RAP and shifting executory interests

Back 3

An executory interest with no limit on the time within which it must vest violates the RAP.

Front 4

Reform of the RAP

Back 4

Instead of hypotheticals, wait 90 years from the creation of the interest and evaluate things then--strike any future interests that violate the common law RAP as if they couldn't have vested w/in 21 years of a measuring life.

Front 5

***Cy pres***

Back 5

If a given disposition violates the RAP, a court may reform it in a way that most closely matches the grantor's intent while still complying with the RAP.

Front 6

Four Step Approach to RAP Problems

Back 6

1. Classify the future interest

2. Identify the conditions precedent to the vesting of the suspect future interest

3. Find a measuring life, a person alive at the date of conveyance whose life or death is relevant to the condition's occurrence; and

4. Ask whether you'll know within 21 years of the death of the measuring life, if the future interest holders can or cannot take? If they can the conveyance is good, if there's a possibility that the precedent condition will not occur more than 21 years after the death of the measuring life the future interest is void.