What does the term "reversion" signify in property law?

The term "reversion" in property law signifies the return of property to the grantor after a lease or other interest in the property has expired. This concept is rooted in the idea that when an owner transfers a limited interest in the property (such as a lease) to another party, they do not give up their complete ownership. Instead, once the term of that limited interest ends, the property reverts back to the original owner (the grantor).

Understanding reversion is essential, as it illustrates the dynamics of property interests and ownership rights. In scenarios involving leases, for instance, once the lease duration concludes, the landlord's right to the property is restored, and they regain full control. This concept also applies in situations where property is transferred with conditions or for a specific purpose—the grantor maintains a contingent interest that returns to them if those conditions are not met.

This definition clarifies why the other choices do not adequately represent the term "reversion." A transfer of property to a new owner describes a conveyance, while the owner's right to dictate future property use pertains to different property rights such as easements or restrictive covenants. The ability to sell property before a lease ends relates more to contractual obligations rather than the nature of re