Also known as:rights of reverter · possibility of reverter
Written by attorneys · grounded in primary & secondary sources — see below
A reversionary interest retained by a grantor that becomes possessory upon the occurrence of a specified event ending the grantee's estate. The interest arises when the deed language creates a fee simple determinable or analogous defeasible estate subject to an automatic condition precedent.
Sources & Authorities
How it applies
Common Examples
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Factory Use Restriction Triggers Reverter
Nova Plastics conveyed an old factory to Omega Metal by deed providing that Omega Metal would hold the premises so long as they were used for light manufacturing and not for warehousing. The deed stated that ownership would automatically vest in the grantor upon discontinuation of such use. Omega Metal later subleased the building to a logistics company that primarily stores goods. Nova Plastics holds a right of reverter that will become possessory if the prohibited use continues.
Mutual Insurer Headquarters Change
Betty conveyed a suburban office complex to Highland Indemnity by deed stating the property was to be held so long as it remained the headquarters of a mutual insurer and upon any change the estate would end and the property would pass to South Assurance or revert to Betty's estate. Highland later demutualized and leased most of the building to technology firms. Betty's lineal descendants receive any remaining reversionary interest through probate after the condition occurred.
Select any source to read its text and confirm it supports the definition.
Restatements
Casebooks
Study Supplements
Fee Tail Spouse Interest Subordination
A grantor conveyed land creating a fee tail in the deceased spouse. The surviving spouse claims dower in the land. The surviving spouse's interest is subordinate to any right of reverter that restricted the estate of the deceased spouse.
Fee Tail Preserved For Single Lifetime
A grantor conveyed land creating a fee tail preserved for a single lifetime only in the deceased spouse. The surviving spouse claims dower in the land. The surviving spouse's interest is subordinate to any right of reverter that restricted the estate of the deceased spouse.
Fee Simple Conditional Spouse Claim
A person held an estate in fee simple conditional. The surviving spouse claims dower in the land. The surviving spouse's interest is subordinate to any right of reverter that restricted the estate of the deceased spouse and which has not been destroyed by a transfer made by the deceased spouse.
Railroad Right Of Way Abandonment
The United States granted a right of way across land for railroad purposes. The railroad later abandoned the line. The right of reverter held by the adjacent fee owner became possessory upon abandonment because the original grant limited the estate to the specified use.
Marvin M. Brandt Revocable Trust, et al. v. United States134 S. Ct. 1257 (2014)
Common questions
Frequently Asked
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How does a possibility of reverter differ from a reversion?+
A reversion is any reversionary interest which is not subject to a condition precedent. A possibility of reverter is any reversionary interest which is subject to a condition precedent.
Supporting sources
What happens to a possibility of reverter when the owner of a fee simple conditional dies without issue?+
The land passes to the person entitled under the possibility of reverter when there is no specified issue and no person holding an executory interest limited as an alternative.
Supporting sources
Is a right of reverter subordinate to a surviving spouse's dower claim in a fee tail estate?+
The surviving spouse's dower or curtesy interest is subordinate to any possibility of reverter or power of termination that restricted the estate of the deceased spouse.
Supporting sources
Does the deed language so long as create a possibility of reverter?+
Yes. Words such as so long as signal that the estate ends automatically when the stated use stops. That automatic ending is a condition precedent to the grantor's future interest, converting it into a possibility of reverter rather than a reversion.
Supporting sources
Can a grantor transfer a retained right of reverter by deed?+
The owner of any reversionary interest in land has the power by an otherwise effective conveyance inter vivos to transfer the interest or any part thereof.
Supporting sources
134 S. Ct. 1257 (2014)Property
…"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…