Top Royalty Deed Violates Rule Against Perpetuities

Looks to the Texas Supreme Court’s decision in Peveto v. Starkey. In Peveto, the Court held that the conveyance of a top deed that is granted at the expiration of a prior royalty deed with an indefinite second term violates the rule against perpetuities. The author believes that additional judicial clarification, if not legislative action, is required on the issue.