In real estate law, a reversionary interest is a future interest held by a person who has transferred a temporary estate in property but retains the right to regain possession when that estate ends. The interest arises by operation of law and does not require a new conveyance when the prior estate terminates.
Reversionary interests commonly occur in landlord tenant relationships and life estates. For example, when a lease expires or a life tenant dies, the property automatically returns to the holder of the reversionary interest or that person’s heirs, restoring full ownership rights.
