What does the term "reversionary interest" describe?

Reversionary interest refers to the right of a property owner to reclaim ownership of property after a certain event or condition occurs, such as the expiration of a lease or the end of a life estate. This legal concept essentially means that the property reverts back to the original owner or their heirs after a specified time or upon the occurrence of a specific event.

The idea behind reversionary interest is crucial in estate planning and property law, as it outlines future interests in the property that can impact how property is used or transferred. For example, if a property is granted to someone for their lifetime, upon their death, the property would revert back to the original grantor or their estate.

This understanding of reversionary interest helps clarify the dynamics of ownership, especially in lease agreements and property transfers, where rights and future claims must be clearly defined to avoid disputes.