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. | + | 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 | + | 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.