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Simple English definitions for legal terms
Possibility of reverter
Read a random definition: common-stock equivalent
A quick definition of Possibility of reverter:
Possibility of reverter: This is when someone gives something to someone else, but they still keep the right to take it back in the future. It's like lending a toy to a friend, but saying you want it back after a certain amount of time. This is called a "possibility of reverter."
A more thorough explanation:
Definition: Possibility of reverter is a future interest that the grantor retains in a property after conveying it to someone else. It is a legal right that allows the grantor to regain ownership of the property if certain conditions are not met.
Example: If a landowner grants a piece of land to a city for the purpose of building a public park, the landowner may retain the possibility of reverter. This means that if the city fails to use the land for the intended purpose, the ownership of the land will revert back to the original owner.
Explanation: The possibility of reverter is a legal tool that allows the grantor to ensure that their property is used for a specific purpose. In the example above, the landowner wants to ensure that the land is used for a public park. If the city fails to use the land for this purpose, the landowner can regain ownership of the land and use it for another purpose.