A right of first refusal may vest outside the 21-year perpetuity period if it is triggered by the decision to sell the property. This statement concerns which rule?

• A. The Rule Against Perpetuities
• B. The Statute of Frauds
• C. The Parol Evidence Rule
• D. The Capitation Tax Rule

Answer: (A)

This concerns the Rule Against Perpetuities. It blocks future interests from vesting later than 21 years after a life in being, so the timing of when an interest actually vests matters. A right of first refusal that is triggered by the decision to sell creates a condition whose vesting date is the sale decision itself. That decision could occur long after the grant, potentially beyond the life-in-being plus 21 years. If the ROFR could vest outside that window, it violates RAP unless it’s rewritten to vest within the allowed period or tied to a definite event likely to occur within it. The other rules listed don’t govern when a future property interest must vest: Statute of Frauds concerns the writing requirement for land transfers, Parol Evidence Rule concerns evidence of terms, and the Capitation Tax Rule is about taxes. So the rule at issue is the Rule Against Perpetuities.