Legal Definitions - possibility of a reverter

The possibility of a reverter is a legal concept describing a future right held by someone who has given away property, but with a very specific condition attached to its ownership. This right means that if the condition is no longer met, the property ownership automatically returns to the original giver.

This situation arises when property is transferred under a special type of ownership called a fee simple determinable. In such a transfer, the original owner (the grantor) specifies that the property must be used in a certain way, or that a particular event must or must not occur. The crucial aspect is that if this condition is violated, or the specified event happens, the property ownership doesn't just *allow* the original owner to take it back; it *automatically* reverts to them, as if the conditional ownership never existed. The "possibility of a reverter" is the potential for this automatic return of ownership.

It's important to note that this is different from a situation where the original owner has the *option* to reclaim the property if a condition is broken. With a possibility of a reverter, the return of ownership is immediate and automatic once the condition is no longer satisfied.

• Example 1: Public Use Land

  A city council donates a parcel of land to a local arts foundation, stating in the deed, "This property is granted to the Arts Foundation so long as it is continuously used as a public art gallery." If the Arts Foundation later decides to sell the building to a private developer who plans to convert it into luxury condominiums, the ownership of the land would automatically revert back to the city. The city wouldn't need to take any action; the moment the condition (continuous use as a public art gallery) is violated, the property legally belongs to the city again.

• Example 2: Environmental Preservation

  An environmental trust sells a large tract of land to a private individual with a deed that specifies, "This land is conveyed to the buyer until any part of it is developed for commercial or residential purposes." If the individual later obtains permits to build a shopping center on a portion of the land, the entire property would automatically revert to the environmental trust. The trust holds the possibility of a reverter, meaning they have a future interest that becomes current ownership the instant the development condition is breached.

• Example 3: Historical Preservation

  A historical society grants an old mansion to a preservation group with the condition, "This property is granted to the Preservation Group as long as the historic integrity of the original structure is maintained." If the Preservation Group undertakes a major renovation that significantly alters the original architecture and historical features of the mansion, the property would automatically revert to the historical society. The society's possibility of a reverter ensures that if the core condition of the grant is broken, ownership returns to them without further legal action on their part.