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Leasehold Options and the Rule Against Perpetuities

By Stewart E. Sterk
July 29, 2009

Although a number of jurisdictions across the country have abolished the Rule Against Perpetuities altogether, the Rule remains very much alive in New York. Just this year, the Rule has reared its head in two appellate cases involving lease renewal options. In the first, Double C Realty Corp. v. Craps, LLC, 58 NY2d 480, the First Department upheld the leasehold option. In the second and more recent case, Bleecker Street Tenants Corp. v. Bleeker Jones, LLC, NYLJ 6/26/09, p. 25., col. 3., the same court held the leasehold option invalid, drawing a distinction that has no relationship to the purposes behind the Rule.

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