Which term describes a future interest that returns to the grantor if the grantee's interest ends?

Which term describes a future interest that returns to the grantor if the grantee's interest ends?

• A. Remainder
• B. Reversionary interest
• C. Fee simple
• D. Life estate

Answer: (B)

A reversionary interest is a future interest that the grantor retains to take back the property when the grantee’s limited estate ends. If the grantor says “to X for life,” X has a life estate, and when X dies, the property returns to the grantor (or the grantor’s heirs). That return to the grantor is the reversionary interest. It’s what the grantor holds if they transfer only a shorter duration than their own ownership and don’t name a third party to take over as a remainder. This differs from a remainder, which is a future interest held by someone other than the grantor that becomes possessory after the prior estate ends. A fee simple is the broad, ongoing ownership, not a future interest, and a life estate is the present possessory right of the grantee, not a future interest.

A reversionary interest is a future interest that the grantor retains to take back the property when the grantee’s limited estate ends. If the grantor says “to X for life,” X has a life estate, and when X dies, the property returns to the grantor (or the grantor’s heirs). That return to the grantor is the reversionary interest. It’s what the grantor holds if they transfer only a shorter duration than their own ownership and don’t name a third party to take over as a remainder. This differs from a remainder, which is a future interest held by someone other than the grantor that becomes possessory after the prior estate ends. A fee simple is the broad, ongoing ownership, not a future interest, and a life estate is the present possessory right of the grantee, not a future interest.