Possibility of reverter refers to the future interest held by a grantor or transferor of property as a fee simple determinable. The original grantor of a fee simple determinable holds the possibility of reverter.
Distinct from a fee simple absolute, a fee simple determinable is an estate with a provision that automatically reverts the property to the grantor if an event happens. The event (or nonevent) that triggers the automatic transfer of property back to the grantor is called the condition subsequent. Thus, the possibility of reverter is the interest held by the grantor that may or may not be triggered and leads to automatic restoration of ownership in the grantor/transferor. This is also distinct from the right of entry, which is a future interest held by the grantor that allows, but does not require, the grantor to restore ownership (see fee simple subject to condition subsequent).
See also: possibility of a reverter, possessory estate
[Last updated in January of 2024 by the Wex Definitions Team]
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