Also known as: reverter · possibility of reverter
Written by attorneys · grounded in primary & secondary sources — see below
A future interest retained by a grantor or the grantor's successors when conveying a defeasible fee estate. It arises whenever the conveyance leaves a reversionary interest subject to a condition precedent that may cause the estate to end automatically.
Nora conveyed a building to a chef partnership for as long as the ground floor operated as a full-service restaurant, with automatic return to Nora or her heirs if the use stopped. Years later the partnership shifted to catering and offices. Nora's heirs asserted title under the retained interest. The interest qualified as a possibility of reverter because it was subject to the condition precedent of changed use.
Betty conveyed an office complex to Highland Indemnity so long as it remained headquarters of a mutual insurer, with title to pass to South Assurance or revert to Betty's estate on any change. Highland demutualized and leased most of the building to technology firms. The change triggered the condition. Betty's descendants received the interest under her will as persons entitled under the possibility of reverter.
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A husband held land in fee simple conditional subject to a possibility of reverter. After his death his widow sought dower. The surviving spouse's dower interest was subordinate to the possibility of reverter that had restricted the deceased spouse's estate.
A person held land in a fee tail preserved for a single lifetime only, subject to a possibility of reverter. Upon the holder's death the surviving spouse claimed curtesy. The curtesy interest remained subordinate to the possibility of reverter that had restricted the deceased spouse's estate.
Captain Henry conveyed a cottage to his daughter Claire in fee simple conditional, with a possibility of reverter if she sold to a non-sailor. Claire later sold to Jordan. Henry's estate asserted the interest. The surviving spouse's dower or curtesy would have been subordinate to the possibility of reverter that had restricted the deceased spouse's estate.
No. A possibility of reverter is a future interest retained by the grantor or the grantor's successors. Traditional doctrine exempts such interests from the rule against perpetuities because they are neither remainders nor executory interests created in a transferee.
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A possibility of reverter follows a fee simple determinable and arises automatically upon the condition precedent. A power of termination follows a fee simple subject to condition subsequent and requires the grantor to take affirmative action to reenter.
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Yes. The owner of any reversionary interest, including a possibility of reverter, may convey the interest by an otherwise effective inter vivos deed.
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The interest passes under the grantor's will or by intestacy to the persons entitled under the possibility of reverter when no issue or holder of a prior executory interest exists.
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