Which option is NOT an exception to the Rule Against Perpetuities (RAP)?

The Rule Against Perpetuities (RAP) is a legal doctrine that restricts the ability to create future interests in property that might not vest within a certain timeframe, typically measured by the life of a person plus 21 years. Among the options presented, leaseholds are the notable exception in this context.

Leaseholds are a type of property interest where one party (the tenant) has the right to occupy or use a property for a specific period, typically defined in a lease agreement. These interests do not raise concerns related to the RAP because they don't create a future interest in the context that would be subject to the rule. Unlike future interests such as contingent remainders or certain life estates, leaseholds have a clear and defined term during which the tenant's rights are in effect, and they typically do not extend beyond that term in a way that would violate the RAP.

In contrast, life estates, future interests, and contingent remainders all signify situations where the property interest could potentially extend indefinitely or vest at an uncertain time, hence making them subject to the RAP. Therefore, leaseholds stand out as the correct answer since they do not create future interests that can violate the principles established by the Rule Against Perpetuities.