15Options

15 Options

(1)  The rule against perpetuities does not apply to a disposition consisting of the conferring of an option to acquire for valuable consideration an interest reverting to the lessor on the termination of a lease of land if –

(a) the option is exercisable only by the lessee or the lessee's successors in title; and

(b) it ceases to be exercisable at or before the expiration of one year following the termination of the lease.

(2)  An option to acquire an interest in land that is not an option to which subsection (1) refers is void and a right of pre-emption in respect of land is void if the option or right according to its terms is, or may be, exercisable –

(a) in the case of an instrument that provides for the price to be regulated by reference to the market price of the land at the date of the exercise of the option or right, at a date more than 21 years after the date of its grant; or

(b) in the case of any other instrument, at a date more than 6 years after the date of its grant.

(3)  Subsection (2) does not apply to an option or right of pre-emption conferred by a will and nothing in that subsection affects an option for renewal of a lease or a right to purchase the reversion, whether by way of option or pre-emption, contained in a lease.

(4)  An option to acquire an interest in personal property that is capable of being enforced by specific performance is void and a right of pre-emption in respect of any such property is void if the option or right according to its terms is, or may be, exercisable at a date more than 21 years after the date of its grant.

(5)  An option or right that is void by virtue of subsection (2) or (4) is not exercisable by any person and no remedy lies in contract or otherwise for giving effect to it or making restitution for its lack of effect.

(6)  For the purposes of this section, a reference to a lease includes a reference to an agreement for a lease, a tenancy agreement, a licence or some other written document for, or relating to, occupancy.