A future interest that returns property to the grantor or their heirs after a lesser estate, like a life estate, ends.
Why Reversion matters on the exam
This term belongs to Property Ownership. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Reversion
Every Freehold question shows why the right answer is right — and cites its source.
Eminent domain is best defined as:
The government's power to regulate land use without paying compensation
The government's power to take private property for public use upon payment of just compensation
A private owner's right to restrict a neighbor's use of adjoining land
The automatic reversion of property to the state when an owner dies without heirs
Show answer & explanation
The government's power to take private property for public use upon payment of just compensation — Eminent domain is the inherent power of government to take private property for a public purpose, but the Fifth Amendment requires that the owner receive just compensation.
Source: PSI National Real Estate Exam Content Outline §2 Land Use Controls
A condominium owner typically holds which combination of interests?
A leasehold in the unit and a license to use common areas
Fee simple title to the unit plus an undivided interest in the common elements
Shares in a corporation with a proprietary lease for the unit
A life estate in the unit with reversion to the association
Show answer & explanation
Fee simple title to the unit plus an undivided interest in the common elements — Condominium ownership combines fee simple title to the individual unit with an undivided fractional interest in common elements such as hallways, roofs, and amenities. Corporate shares with a proprietary lease describe a cooperative instead.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
The future interest retained by a grantor after conveying a fee simple determinable is called a:
Right of reentry
Executory interest
Possibility of reverter
Remainder interest
Show answer & explanation
Possibility of reverter — A fee simple determinable automatically reverts upon breach of the stated condition, and the interest retained by the grantor to receive that automatic reversion is called a possibility of reverter.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
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