What is a reversion in property law?

In property law, a reversion refers to a future interest that is retained by the grantor after they have transferred a lesser estate to another party. This means that when the lesser estate (such as a life estate or leasehold estate) terminates, ownership reverts back to the grantor or their heirs.

This mechanism ensures that the grantor can regain control of the property after the designated estate comes to an end. For instance, if a property owner grants someone a life estate, the property will eventually revert back to the owner or their heirs once the life tenant passes away or the estate is otherwise terminated.

The other options do not accurately capture the nature of a reversion. A transfer of complete ownership describes a situation where full title is given to another party, which differs from the concept of a reversion. A limitation on the estate's duration addresses the length of time an estate is held rather than the rights retained by the grantor. Lastly, a clause that allows for automatic reversion may pertain to specific contractual terms but does not represent the fundamental legal concept of what a reversion entails in property law.