Legal Definitions - Reverter

A reverter refers to the legal possibility that ownership of a property will return to the original grantor (the person who initially transferred the property) or their heirs, if a specific condition attached to the property transfer is no longer met or is violated. It represents a future interest in the property, meaning the grantor doesn't currently own it, but has a legal right to reclaim it under certain predefined circumstances.

Here are some examples to illustrate this concept:

• Example 1: Land Donated for a Public Purpose

  A wealthy philanthropist donates a large parcel of land to a city with the specific condition that it "shall be used exclusively as a public botanical garden, and for no other purpose." The deed specifies that if the land ever ceases to be used as a botanical garden, ownership will automatically revert to the philanthropist's estate. In this scenario, the philanthropist's estate holds the reverter – the potential future right to reclaim the land if the city violates the condition of its use.

• Example 2: Building Gifted to a Non-Profit

  An elderly couple gifts their historic family home to a local historical society, stipulating in the deed that the property "must always be maintained as a museum dedicated to local history." The deed further states that if the historical society ever sells the property or converts it into commercial offices, the property will revert to the couple's descendants. The couple's descendants possess the reverter, meaning they have a future interest that allows them to reclaim the property if the condition of its use as a museum is breached.

• Example 3: Land Sold with Environmental Restrictions

  A conservation trust sells a tract of ecologically sensitive land to a private developer with a deed restriction stating that the land "shall forever remain undeveloped and in its natural state." The agreement includes a clause that if any construction or alteration of the natural landscape occurs, the land will revert to the conservation trust. The conservation trust holds the reverter, giving them the legal right to regain ownership of the land if the developer fails to uphold the environmental preservation condition.