Also known as: possibility of reverter · possibility of reverter's · possibilities of reverter's · possibility of reversion
Written by attorneys · grounded in primary & secondary sources — see below
A reversionary interest subject to a condition precedent. The interest remains in the transferor or the transferor's successors after a conveyance of a defeasible fee and becomes possessory upon occurrence of the stated condition.
Pierce Patterson conveyed land to Pulse Media for so long as the parcel served as a restaurant. When Pulse Media converted the building to offices, the condition occurred and title automatically returned to Pierce. The interest Pierce retained was subject to the condition precedent of changed use.
Pamela Phillips conveyed property to Platinum Partners so long as used for manufacturing. Upon Pamela's death without issue or executory interest holder, the possibility of reverter passed under the will to her designated successors. The interest operated as the default recipient when no higher priority claimant existed.
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Paige Porter held a fee tail estate subject to a possibility of reverter retained by the original grantor. After Paige's death her surviving spouse claimed dower, but the claim remained subordinate to the possibility of reverter that restricted the estate. The reverter interest took priority over the spousal claim.
Priya Prasad received a fee tail preserved for a single lifetime only, subject to a possibility of reverter. Upon her death the surviving spouse sought curtesy, yet the interest remained subordinate to the reverter that restricted the estate. The reverter continued to limit the spousal share.
Perry Pratt conveyed land creating a fee simple conditional in Pierre Poulin. After Pierre's death the surviving spouse asserted curtesy, but the claim stayed subordinate to the possibility of reverter that had restricted the estate and had not been destroyed by prior transfer. The reverter interest prevailed.
Progressive Healthcare received a right of way from Precision Tools subject to a condition that the strip be used only for rail transport. When the line was abandoned the possibility of reverter held by Precision Tools ripened into present title. The interest operated automatically upon the stated condition without need for further action.
No. A possibility of reverter is a future interest retained by the transferor and is categorically exempt from the rule against perpetuities. Courts treat it as vested at creation because it remains in the grantor or the grantor's successors.
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A possibility of reverter follows a fee simple determinable and becomes possessory automatically upon the condition. A power of termination follows a fee simple subject to condition subsequent and requires affirmative reentry by the holder.
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Yes. The owner of any reversionary interest, including a possibility of reverter, may transfer the interest by an otherwise effective inter vivos conveyance.
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The interest passes by will or intestacy to the holder's successors. When no issue or executory interest holder stands in priority, the possibility of reverter passes to the person entitled under the will or by representation.
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Yes. Succession through corporate reorganization continues the original retained interest rather than creating a new one, preserving the exemption from the rule against perpetuities.
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…"basic common law principles" require us to retreat from our prior holdings that railroad rights of way entail an implied possibility of reverter to the original grantor—the United States—should the right of way cease to be used by a railroad for its intended purpose. Ante , at 1265–1266. But federal and state decisions in this…