Difference between revisions of "Reversion"

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A reversion is a property interest retained by an owner when he conveys less than an absolute interest in the property.  The owner or grantor retains a reversion when he holds a present or future interest in the property.
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A reversion is a property interest retained by an owner when he conveys less than an absolute interest in the property.  A reversion is established automatically by law based on a condition of use or termination of an interest by someone else.
  
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For example, a donation of a field to a town on the condition that it always be used for Little League creates a reversion in the donor in the event that specified use ceases.
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For example, a donation of a field to a town so long as it is used for Little League creates a reversion by operation of law if the specified use ceases.
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Reversions are not subject to the [[Rule Against Perpetuities]] because they are vested interests.

Revision as of 06:01, January 20, 2007

A reversion is a property interest retained by an owner when he conveys less than an absolute interest in the property. A reversion is established automatically by law based on a condition of use or termination of an interest by someone else.

For example, a donation of a field to a town so long as it is used for Little League creates a reversion by operation of law if the specified use ceases.

Reversions are not subject to the Rule Against Perpetuities because they are vested interests.