What is a reverter clause?
A reversionary clause in a deed is a statement that, upon the occurrence (or non-occurrence) of a specific event or events, title to the deeded property returns (reverts) to the origi- nal owner.
What is a reverter in real estate?
A contingent future interest in real property that a grantor of a determinable fee possesses after he or she has conveyed property.
What are reverter rights?
Possibility of reverter, which is where the possessory interest automatically reverts back to the grantor or devisor if, and only if, a specific condition happens. Right of entry, which is where the grantor or devisor of the future interest has the right to retake possession of the property if a condition has been met.
What is the difference between reversion and reverter?
Although both result in the return of the land to the original grantor or his heirs, reversions occur upon the natural expiration of the grantee’s estate, while the possibility of reverter actively ends the grantee’s otherwise-indefinite estate as a consequence of the grantee’s failure to comply with the condition …
What is the possibility of a reverter?
The possibility of reverter is a future interest held by a grantor or transferor of property as a fee simple determinable (See possessory estate). Distinct from a fee simple absolute, a fee simple determinable is an estate that has a provision that automatically reverts the property to the grantor if an event happens.
What is an example possibility of reverter?
For example, if A, owner of Black-acre in fee simple, makes the conveyance, “To B and B’s heirs as long as the land is used for church purposes,” then A has a possibility of reverter. A is entitled to the return of the land if B and B’s heirs do not use the land for the designated purpose.
What is the possibility of reverter?
Which of the following types of ownership estates may contain a reverter clause?
Future estates may be either reversionary estates or: Remainder estates. An estate in land that places certain restrictions on an owner’s use of the property and contains an automatic reverter clause is known as: A fee simple determinable estate.
Can a possibility of reverter be conveyed?
The grantor retains a possibility of reverter if he conveys a fee simple determinable, which is a fee simple subject to some condition. For instance, if the grantor conveys land to be used to build a church, and the grantee does not build a church, then the land will revert back to the grantor automatically.
What is the right of reentry?
1) The repossession of real property by a previous landholder with a future interest in the property who holds the right to repossess the property should the current landholder breach a condition of the grant through which they held the property. Also referred to as right of reentry, or power of termination.
Can you convey a possibility of reverter?
The possibility of reverter arises when the grantor of real property has conveyed land subject to the possibility that the estate will return to her or to her heirs if a certain specified limitation occurs.
What is possibility of reverter?
