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  • 20 (1) The rule against perpetuities does not apply to an option to acquire for valuable consideration an interest reversionary on the term of a lease or renewal of a lease, whether the lease or renewal is of real or personal property,
  • (a) if the option is exercisable only by the lessee or his successors in title, and
  • (b) if it ceases to be exercisable at or before the expiration of one year following the determination of the lease or renewal.
  • (2) Subsection (1) applies to an agreement for a lease as it applies to a lease, and “lessee” must be construed accordingly.
  • (3) Subsection (1) applies to a right of first refusal or pre-emption as it applies to an option.
  • (4) The rule against perpetuities does not apply to an option to renew a lease of property.

1979-321-17.