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Future Interests In The Transferor


the new holder of the reversion also runs the risk of divestment. Possibility (Right) of Reverter A possibility of reverter is the name of the residual future interest held by a transferor of a fee simple determinable only. Thus, a grant “To A for so long as no alcohol is sold on the property” creates a possibility of reverter in the grantor.
Duration The possibility of reverter runs with the fee simple determinable that was conveyed. It is a future interest that only becomes possessory, if at all, when the condition is broken. It entitles the grantor to automatic repossession of the property.

Note: A grantee who stays in possession after the condition is broken is considered to be in adverse possession.
Alienability This future interest is freely alienable and inheritable (majority rule).
Public Policy Courts are generally hostile to possibilities of reverter because they cause forfeiture and encumber the free use and transfer of land. Unless the language is completely unambiguous, courts will construe the restrictions as only a suggestion or a covenant.

C. Right of Entry A right of entry is the residual future interest in the transferor of a fee simple upon a condition subsequent, where the transferor expressly reserves the right to reenter the land and reclaim possession.
Example: “To A, but if the land is used to sell alcohol, G or his heirs shall have the right to enter and declare the estate forfeit.

The right of entry runs with the land and can be asserted against any subsequent grantee of the original transferee. It only becomes possessory if the condition is broken.

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