88 N.Y. 2d 466 (1996).

A 1996 New York Court of Appeals’ opinion in which the court held invalid and void from creation an option given to a seller of property to buy it back “at any time” during the next 24 years in violation of the New York’s Rule against Perpetuities (NY CLS EPTL § 9-1.1).

The court held that the New York’s statutory Rule against Perpetuities applied to commercial options to purchase real estate.  Since the plain language of the option agreement at issue indicated that the option could potentially be exercised more than 24 years after its creation, which was more than 21 years permitted under § 9-1.3, it was invalid under the Rules against Perpetuities.

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