Define: Possibility Of A Reverter

The possibility of a reverter is a legal interest or right retained by a grantor when conveying property, typically in the context of real estate law. It arises when property is transferred subject to a condition subsequent, such as a restriction or limitation on its use. If the condition is violated or not met, ownership of the property automatically reverts back to the grantor or the grantor’s heirs, without the need for any further action. The possibility of a reverter is often associated with the creation of determinable estates, such as a fee simple determinable, where ownership is subject to the occurrence or non-occurrence of a specified event. It represents a future interest held by the grantor or the grantor’s successors, providing a mechanism for the automatic reversion of property rights in certain circumstances.

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This glossary post was last updated: 29th March 2024.