Also known as: reversionary interest · reversionary · reversion
Written by attorneys · grounded in primary & secondary sources — see below
A future interest retained by a grantor after conveying a lesser estate in land. The interest becomes possessory upon the natural termination of the preceding estate or upon the occurrence of a stated condition. It encompasses reversions, possibilities of reverter, and rights of entry.
Renata Russo leased a warehouse to Riverfront Developments under a long-term lease containing an affirmative covenant to maintain the loading dock. The dock required daily inspections best performed by the tenant in possession. When Riverfront Developments failed to maintain the dock, the covenant burden ran to the lessee rather than remaining with Renata Russo as holder of the reversionary interest.
Reliance Insurance merged into Rocky Mountain Mining with Rocky Mountain Mining as survivor. All contract rights and real property previously held by Reliance Insurance passed directly to Rocky Mountain Mining. No reversion or impairment occurred because the statute automatically vested every asset in the survivor.
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Ronald Reed conveyed land in fee tail to his son. Upon the son's death without issue the land returned to Ronald Reed's reversion. The reversionary interest allowed Ronald Reed's estate to take possession immediately.
Rhea Reynolds's LLC merged into Redwood Bank as survivor. All real property owned by the merging LLC vested in Redwood Bank without any separate transfer or reversion. The surviving entity received clear title by operation of the merger statute.
Roger Ramirez's will left property to his heirs at law. Because the doctrine of worthier title is abolished, the language did not create a reversionary interest in Roger Ramirez's estate. The property passed directly to the designated heirs without any retained future interest.
Rina Rahman conveyed land in fee tail to her husband. Upon the husband's death the land returned to Rina Rahman's reversion. The reversionary interest allowed her estate to recover possession under the original grant.
Reversionary interests are exempt from the Rule Against Perpetuities because they are deemed to vest immediately upon creation. The exemption applies to reversions, possibilities of reverter, and rights of entry retained by the grantor.
The owner of a reversionary interest may convey it by an otherwise effective inter vivos deed. Transferability promotes alienability and applies without distinction among types of reversionary interests.
Under the Uniform Probate Code the doctrine of worthier title is abolished. Language describing beneficiaries as the transferor's heirs does not create or presumptively create a reversionary interest in the transferor.
…in Berman extended beyond that to encompass the purpose of developing that area to create conditions that would prevent a reversion to blight in the future. See 348 U. S., at 34-35 ("It was not enough, [the experts] believed, to remove existing buildings that were insanitary or unsightly. It was important to redesign…