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Introduction
The previous chapter introduced the doctrine of future interests, explaining that ownership of land may be divided across time. A present possessory estate may belong to one person, while another already possesses a legally recognized right to future possession. (Legal Information Institute)
This chapter narrows that discussion to the two future interests most frequently encountered in American property law: reversions and remainders.
Both arise when a present estate of limited duration—such as a life estate or a leasehold—will eventually come to an end. The crucial question is not whether the present estate will terminate, but who is legally entitled to possess the property next.
The answer depends upon the language of the conveyance.
- If the grantor retains the future interest, the interest is generally a reversion.
- If the grantor creates the future interest in someone else, the interest is generally a remainder.
What Is a Reversion?
A reversion is a future interest retained by the grantor after conveying less than the entire estate. (Legal Information Institute)
Rather than transferring complete ownership, the grantor conveys only a limited estate while retaining the remaining ownership interest. When the limited estate naturally expires, possession automatically returns to the grantor or the grantor's successors.
Unlike some other future interests, a reversion does not require express language reserving the interest. It arises automatically whenever the grantor conveys a lesser estate without creating a future interest in another person.
Example
“O conveys Blackacre "to A for life."”
- Present Estate: A — Life Estate.
- Future Interest: O — Reversion.
When A dies, the life estate terminates, and possession returns automatically to O (or O's successors).
Characteristics of a Reversion
A reversion possesses several defining characteristics.
Retained by the Grantor
A reversion always remains with the transferor or the transferor's successors. It is never initially created in a third party.
Arises Automatically
A reversion does not require special words of reservation. Whenever a grantor conveys less than the entire estate without giving the remaining interest to someone else, the undisposed portion remains with the grantor by operation of law.
A Present Property Interest
Although possession is postponed, a reversion is a presently existing property interest. It may generally be transferred, inherited, or devised according to applicable law.
Becomes Possessory Upon Natural Termination
A reversion becomes possessory only after the preceding estate naturally expires. For example:
- expiration of a life estate;
- expiration of a leasehold term; or
- termination of another estate of limited duration.
What Is a Remainder?
A remainder is a future interest created in someone other than the grantor that becomes possessory immediately upon the natural expiration of a prior estate. (Legal Information Institute)
Unlike a reversion, a remainder does not stay with the grantor. Instead, the grantor expressly identifies another person who will receive possession once the present estate ends.
Example
“O conveys Blackacre "to A for life, then to B."”
- Present Estate: A — Life Estate.
- Future Interest: B — Remainder.
When A dies, B automatically acquires possession.
Unlike an executory interest, a remainder does not cut short the preceding estate. It simply waits until that estate reaches its natural conclusion. (Legal Information Institute)
Requirements of a Valid Remainder
Traditionally, a valid remainder possesses several characteristics.
Created in the Same Instrument
The remainder must arise in the same deed, will, or other conveyancing instrument that creates the prior estate.
Follows a Naturally Terminating Estate
A remainder may follow:
- a life estate; or
- a term of years.
Because those estates terminate naturally, a remainder may become possessory immediately afterward.
Does Not Divest the Prior Estate
A remainder patiently waits. It does not interrupt or prematurely terminate the preceding estate. This characteristic distinguishes remainders from executory interests.
Immediate Possession
Once the prior estate naturally expires, the remainderman becomes entitled to possession immediately, without any gap in ownership.
Vested Remainders
A vested remainder is one held by an identifiable person and is not subject to a condition precedent other than the natural expiration of the prior estate.
The future owner is already known, and nothing must occur before that person's right becomes possessory except the ordinary termination of the present estate.
Example
“O conveys "to A for life, then to B."”
B has a vested remainder because:
- B is identifiable; and
- no additional condition must occur before possession.
Modern property law recognizes several specialized forms of vested remainders, but those classifications will be examined in a later chapter.
Contingent Remainders
A contingent remainder exists when either:
- the future taker is not yet ascertainable; or
- possession depends upon satisfaction of a condition precedent.
Example One — Unascertained Person
“O conveys "to A for life, then to A's first grandchild."”
If A has no grandchildren when the conveyance is made, the remainder is contingent because the future holder has not yet been identified.
Example Two — Condition Precedent
“O conveys "to A for life, then to B if B survives A."”
B's interest depends upon surviving A. Because that condition must first be satisfied, B holds a contingent remainder.
The more detailed rules governing contingent remainders—including historical common-law doctrines and modern statutory reforms—will be discussed in a later chapter.
Reversion vs. Remainder
The two interests may be compared feature by feature:
| Feature | Reversion | Remainder |
|---|---|---|
| Holder | Grantor | Third party |
| Created by | Operation of law after conveying less than the full estate | Express language in the conveyance |
| Possession begins | Upon natural expiration of the prior estate | Immediately upon natural expiration of the prior estate |
| Requires third-party grantee | No | Yes |
| Example | “To A for life.” | “To A for life, then to B.” |
Although both are future interests, they answer different questions.
A reversion asks: What remains with the grantor?
A remainder asks: Who else has been designated to receive the property?
Reading Conveyancing Language
One of the most valuable property-law skills is learning to identify present and future interests from the language of a deed or will.
If the condition is not satisfied, other future interests may determine who ultimately acquires possession.
By consistently identifying:
- the present estate,
- the future interest, and
- the holder of each interest,
readers can analyze increasingly complex conveyances with confidence.
Practical Applications
Although these doctrines originated centuries ago, reversions and remainders continue to appear throughout modern legal practice. They are commonly encountered in:
- deed drafting;
- estate planning;
- wills;
- trust administration;
- probate proceedings;
- family property transfers;
- title examination; and
- litigation involving ownership succession.
A title examiner reviewing a deed, a trustee administering a trust, or a probate court interpreting a testamentary devise must often determine whether a future interest is a reversion or a remainder.
Common Misconceptions
"A Reversion Exists Only if Something Goes Wrong"
Incorrect. A reversion exists from the moment the conveyance is made whenever the grantor conveys less than the entire estate without creating a future interest in another person. It is not a remedy for breach or failed conveyancing.
"A Remainder Is Only an Expectation"
Incorrect. A remainder is a presently recognized property interest even though possession is delayed until the prior estate naturally expires. Depending upon its nature and applicable law, it may be transferred, inherited, or devised.
Key Takeaways
- A reversion is a future interest retained by the grantor after conveying less than the entire estate.
- A remainder is a future interest created in a third party that becomes possessory immediately upon the natural expiration of a prior estate.
- Reversions arise by operation of law when no future interest is granted to another person.
- Remainders must follow a naturally terminating estate and cannot cut short the prior estate.
- Vested remainders belong to identifiable persons without unmet conditions precedent, while contingent remainders depend upon an unascertained taker or a condition precedent.
- Understanding reversions and remainders is essential for interpreting deeds, wills, trusts, probate instruments, and chains of title.
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Next Chapter — Defeasible Fees
The next chapter examines defeasible fee estates, including the fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation. It explains how these estates differ from life estates, how they interact with possibilities of reverter, rights of entry, and executory interests, and why conditional language in deeds can significantly affect ownership and future rights.