Kovats Real Estate School Practice Test

What occurs when the grant of land is over and reverts back to the grantor?

1. Termination

2. Reversion

3. Transfer

4. Conveyance

The correct answer is: Reversion

The concept of reversion occurs when a property that was granted to another party returns to the original owner or grantor after certain conditions have been met or after a specified period of time. This legal principle is often found in real estate transactions and is crucial to understanding property rights. When land is granted, it may be done with certain conditions or limitations, and once those conditions are fulfilled or the designated period expires, the rights to the property revert back to the grantor automatically. This distinguishes reversion from other concepts in real estate, as it specifically denotes the return of the property to the original owner without requiring a new agreement or deed. Other terms like termination, transfer, and conveyance refer to different processes related to the handling of property rights. Termination could indicate the end of a lease or contractual relationship, transfer typically refers to the act of moving ownership from one party to another, and conveyance involves the formal act of transferring property through a legal document. Thus, these alternatives do not capture the essence of what occurs when property rights revert back to the grantor as accurately as reversion does.