16Determinable interests

16 Determinable interests

(1)  The rule against perpetuities applies and is taken always to have applied to a possibility of reverter in land on the determination of a determinable fee simple, and in any such case, if the fee simple does not determine within the perpetuity period, it continues after that period as a fee simple absolute.

(2)  The rule against perpetuities applies and is taken always to have applied to a possibility of a resulting trust on the determination of any other determinable interest in property, and in any such case, if that determinable interest does not determine within the perpetuity period, it continues as an absolute interest.

(3)  The rule against perpetuities applies and, except as provided by subsection (4) , is taken always to have applied to a right of entry for conditions broken, the exercise of which may determine a fee simple subject to a condition subsequent and to an equivalent right in the case of property other than land, and in any such case, if the right of entry or other right is not exercised within the perpetuity period –

(a) the fee simple continues after that period as an absolute interest; and

(b) any such other interest in property continues free from the condition.

(4)  Subsection (3) does not apply in relation to a right arising from a disposition made on or after the commencement of the Conveyancing and Law of Property Act 1962 and before the commencement of this Act.

(5)  This section applies whether the determinable or conditional disposition is charitable or not, but the rule against perpetuities does not apply to a gift over from one charity to another charity.

(6)  Where a disposition is subject to –

(a) a provision that causes an interest to which subsection (1) or (2) applies to be determinable; or

(b) a condition subsequent giving rise on breach to a right of re-entry or an equivalent right in the case of property other than land; or

(c) an exception or reservation –

the disposition is treated, for the purposes of this Act, as including a separate disposition of any rights arising by virtue of the provision, condition subsequent, exception or reservation.