Pennsylvania Act 1885-128 — GROUND RENTS, CREATION PROHIBITED

Act text

GROUND RENTS, CREATION PROHIBITED
                 Act of Jun. 24, 1885, P.L. 161, No. 128              Cl. 68
                                  AN ACT

     To prohibit the creation of irredeemable ground rents and to
        prevent ground rents from becoming irredeemable and non-
        extinguishable.

        WHEREAS, The policy of this Commonwealth has always been to
     encourage the free transmission of real estate and to remove
     restrictions on alienations;
        Therefore,
        Section 1.  Irredeemable and non-extinguishable ground rents
     prohibited
        From and after the passage of this act no irredeemable or
     non-extinguishable ground rent shall be charged upon, or be
     reserved out of or for any land within this commonwealth.  Nor
     shall any omission to provide for the redemption of any ground
     rent, or rent charged, nor any option, agreement, contract,
     covenant or condition contained in any deed hereafter to be
     made, charging or reserving ground rent, be in any wise
     construed or interpreted to make such ground rent irredeemable,
     or prevent the extinguishment thereof;  nor shall any ground
     rent or rent charge, hereafter to be charged or reserved as
     aforesaid, be construed or interpreted to be or become
     irredeemable or non-extinguishable, by reason of any failure to
     pay the sum of money, mentioned in the deed to be paid for the
     extinguishment of the rent, within the time fixed by the deed,
     nor shall the period for the extinguishment of any such rent be
     postponed longer than twenty-one years, or a life, or lives in
     being.  And it shall be lawful for the owner or owners of the
     real estate, upon or out of which any such rent shall hereafter
     be charged or reserved, to pay at the time fixed by the deed, or
     by this act, or at any time thereafter, the full amount of the
     principal of said rent, with all arrearages of the said rent to
     the time of such payment: Provided however, That in case there
     shall not be any principal sum fixed for the extinguishment of
     the ground rent, in the deed charging or reserving the same,
     then said ground rent may be redeemed or extinguished by the
     payment of such sum, as will produce a yearly interest, equal in
     amount to the said annual rent, at the legal rate of interest in
     force at the time of the reservation of the said ground rent,
     together with all the arrearages of rent to the time of payment.
     Which said payment shall be a complete discharge of such real
     estate from the said rent and the principal thereof, and the
     encumbrance thereof, and the same shall thereafter cease and be
     forever extinguished, and the covenant for the payment of said
     rent shall thereupon become void, and such owner or owners of
     said real estate shall, thereupon, be entitled to receive at the
     cost of such owner or owners a sufficient release and discharge
     of such rent so extinguished as aforesaid.  (1885, June 24, P.L.
     161, Sec. 1.)