What does a reversionary interest imply in real estate?

A reversionary interest in real estate refers to the original owner's right to regain full ownership of a property upon the termination of a life estate. In this context, a life estate is a type of property ownership that lasts for the duration of an individual's life. Once that individual passes away or the life estate ends for any reason, the property reverts back to the original owner or their heirs, as per the terms established when the life estate was created.

This concept is important in understanding property rights and how interests in real estate can change over time. A reversionary interest ensures that the original owner retains a degree of control and a future stake in the property they once owned, even if they have allowed someone else to occupy it for a specified period.

In contrast, leasehold interests, immediate transfers upon sale, and joint tenancies with survivorship pertain to different aspects of real estate ownership that do not involve the original owner regaining control of a property after a predefined condition (like the end of a life estate) has been met.