Tuesday, March 24, 2015

Can the deed of a real estate deed carry an encumbrance of Right of First Refusal for a section of it in perpetuity? The deed claims that th...

Question

Can the deed of a real estate deed carry an encumbrance of Right of First Refusal for a section of it in perpetuity? The deed claims that the ROFR "runs with the land."



Answer

Nope. An option is not "vested." No interest is good unless it must vest, if at all, within 21 years after a life in being. The attempt to encumber the land with a perpetual ROFR means that no ROFR was created.



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