Quick Notes
If an interest violates the RAP's, we STRIKE it from the grant as if...
It was NEVER created!
*consequences are that you may have to reclassify
Special Rule: If the gift to any member of the class is VOID under RAP, then the gift is void as to ALL members of the class.
*The gift is "bad to one, bad to all." -> the "All or nothing rule."
What Rule can prevent this from happening?
Rule of Convenience!
What are the (2) exceptions to the "All or Nothing Rule"?
1.) Transfers of a specific dollar amount to each class member; and
2.) Transfers to a sub-class that vests a specific time, e.g. "to the children of B, and upon the death of each, to that child's issue."
The traditional RAP has been softened by reform (Uniform Statutory Rule Against Perpetuities). Some states changed the vesting period to...
90 years!
If a portion of a transfer is found to validate the Rule Against Perpetuities, how will courts treat the transfer?
The portion of the transfer that violates the rule is VOID, and the rest is VALID.
REMEMBER: Living people have a nasty habit of BREEDING. Property law assumes that anyone who is alive can...
HAVE CHILDREN!
Are charities exempt from RAP?
Yes!
*RAP does not apply to a gift from one charity to another charity!
*The gift to the alternate charity is NOT subject to RAP
If there is a RAP violation and you have to STRIKE an interest from the Grant, you then have to RECLASSIFY an interest.
If there is a RAP violation and you have to STRIKE an interest from the Grant, you then have to RECLASSIFY an interest.
The Rule of Convenience is a rule that you can CHOOSE to use in order to save a class gift from being void. True or False?
True!
RAP does NOT apply to an OPTION held by a current tenant to purchase a fee interest in the leasehold property. It also does NOT apply to...
An option (or right of first refusal) in a commercial transaction!
For purposes of avoiding RAP, the class closes as soon as a member of the class is entitled to ______ possession.
Immediate possession!
Ex. Oliver conveys "to Anna for life, then to Anna's grandchildren." Anna has one child, Ben. It is possible that other grandchildren will be born more than 21 years after Anna or Ben's death. *(Without the Rule of Convenience, the gift to Ben is VOID under RAP; With the Rule of Convenience, Ben will take at Anna's death. When Anna dies, the class is treated as CLOSED.)