reversion or estate in reversion

reversion or estate in reversion

/(asteyt in) ravarzhan/ A future interest under which a grantor retains a present right to a future interest in property that the grantor conveys to another; usually the residue of a life estate. The residue of an estate left by operation of law in the grantor or his heirs, or in the heirs of a testator, commencing in possession on the determination of a particular estate granted or devised. Any future interest left in a transferor or his successor. Miller v. Dierken, 153 Pa.Super. 389, 33 A.2d 804, 805.

It is a vested interest or estate, in as much as person entitled to it has a fixed right to future enjoyment. Any reversionary interest which is not subject to condition precedent; it arises when the owner of real estate devises or conveys an interest in it less than his own. Mayor and City Council of Ocean City v. Tabor, 279 Md. 115, 367 A.2d 1233, 1240.

The term reversion has two meanings, first, as designating the estate left in the grantor during the continuance of a particular estate and also the residue left in grantor or his heirs after termination of particular estate. Davidson v. Davidson, 350 Mo. 639, 167 S.W.2d 641, 642; Miller v. C. I. R., C.C.A.6, 147 F.2d 189, 193.

It differs from a remainder in that it arises by act of the law, whereas a remainder is by act of the parties. A reversion, moreover, is the remnant left in the grantor, while a remainder is the remnant of the whole estate disposed of, after a preceding part of the same has been given away.

See also escheat

- possibility (possibility of reverter)

- reversionary interest

Compare remainder