Also known as: possibility of reverter · possibilities of reverter · reverter
Written by attorneys — see sources below.
A reversionary interest retained by a grantor after conveying a fee simple determinable or similar defeasible estate. The interest arises when the conveyed estate is subject to a condition precedent that may cause the land to revert automatically to the grantor or the grantor's successors.
Patricia Patel conveyed a corner building to Precision Tools for as long as the ground floor operated as a full-service restaurant. When the company shifted to catering and offices, the condition precedent occurred. Title automatically returned to Patricia's heirs under the retained interest.
Pamela Phillips conveyed an office complex to Platinum Partners so long as it remained headquarters of a mutual insurer, with title to pass or revert on any change. After demutualization and relocation, the condition precedent was satisfied. The possibility of reverter passed under the will to Pamela's lineal descendants.
Pierre Poulin held an estate in fee tail subject to a possibility of reverter. Upon his death the surviving spouse claimed dower. The interest remained subordinate to the possibility of reverter that restricted the deceased spouse's estate.
Priscilla Parks held a fee tail preserved for a single lifetime only, subject to a possibility of reverter. After her death the surviving spouse asserted curtesy. The claim remained subordinate to the possibility of reverter that had restricted the deceased spouse's estate.
Pilar Pena held a fee simple conditional subject to a possibility of reverter. Upon her death the surviving spouse sought dower. The interest was subordinate to the possibility of reverter that had restricted the deceased spouse's estate and had not been destroyed by transfer.
Pioneer Energy conveyed land subject to a railroad right of way that ended when rail use ceased. The possibility of reverter remained with the grantor and passed to successors. When the right of way was abandoned the land reverted automatically to the original grantor's trust.
In 1908 the Laramie, Hahn's Peak and Pacific Railroad obtained a 200-foot-wide right of way across public lands in Wyoming under the General Railroad Right-of-Way Act of 1875. The railroad completed construction of its line in 1911. The line later passed through several owners and was used primarily to transport timber and cattle. In 1976 the United States issued a land patent conveying an 83-acre parcel in Fox Park, Wyoming, to Melvin and Lulu Brandt. The patent conveyed to the Brandts fee simple title to the land "with all the rights, privileges, immunities, and appurtenances, of whatsoever nature, thereunto belonging, unto said claimants, their successors and assigns, forever." The patent stated that the land was granted "subject to those rights for railroad purposes as have been granted to the Laramie[,] Hahn's Peak & Pacific Railway Company, its successors or assigns." The right of way crossed approximately ten acres of the patented parcel. In 1996 the Wyoming and Colorado Railroad notified the Surface Transportation Board of its intent to abandon the right of way. After removing the tracks and ties and obtaining Board approval, the railroad completed abandonment in 2004. In 2006 the United States filed suit seeking a judicial declaration of abandonment and an order quieting title to the right of way in the Government. The complaint named the owners of 31 parcels crossed by the abandoned right of way, including Marvin Brandt who held the Fox Park parcel through a family trust. Brandt contested the claim and filed a counterclaim asserting that the right of way was a mere easement extinguished by abandonment. The district court granted summary judgment to the United States. The Court of Appeals for the Tenth Circuit affirmed. The Supreme Court granted certiorari.
View caseNo. A possibility of reverter is retained by the grantor or the grantor's successors and is categorically exempt from the rule. The rule applies only to certain future interests created in transferees, such as contingent remainders and executory interests.
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A possibility of reverter follows a fee simple determinable and causes automatic reversion upon a 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 effective inter vivos deed. The transfer is complete upon delivery and satisfies formal requirements.
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The interest passes under the grantor's will or by intestacy to the persons entitled to it. When no issue or holder of a prior executory interest exists, the possibility of reverter passes to the person entitled under the will.
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Yes. The surviving spouse of a holder of a fee simple conditional receives dower or curtesy subject to any possibility of reverter that restricted the deceased spouse's estate and was not destroyed by transfer.
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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…