Reversion
Definition of "Reversion"
The definition of reversion in real estate is the return of property or assets to their original owner after a prespecified event or occurrence. This real estate term is used primarily in documents pertaining to estates and their execution, but can also be used in other circumstances. In the following section, we’ll provide an example of reversion in real estate.
Example of reversion in real estate
Steve and Harry are best friends and have been since childhood. After graduating the pair goes their separate ways, attending different colleges and graduating with degrees in finance and anthropology, respectively. Steve finds a comfortable job as a financial advisor in their hometown and marries his high school sweetheart, while Harry moves to the capital of the state and becomes a professor of anthropology at the state's largest University.
Once they have established themselves in the world, they realize they’ve fallen out of touch, and make an effort to reconnect with one another. After gradually reconnecting, the pair are once again spending time together as they rebuild their relationship. Time goes by, and Steve is now the head of the firm he began his career at.
Then, misfortune strikes. The economy enters a recession, and Harry loses his job at the University. He sells his expensive home in the capital and moves back to his hometown to find work. After becoming a grade history teacher, Harry is having difficulties with his finances. In order to help him back to his feet, Steve grants Harry the use of one of the houses he had purchased for investment purposes.
Generously, the conditions specified in the contract were as follows: Harry will have the use of the house until the day he dies. When this happens, reversion dictates that the house will return to Steve, the original owner, or his heirs. In real estate, this is known as the reversion.
Popular Real Estate Terms
(1) Short-term loan that is made in anticipation of permanent longer term loans. The interest rate on such a loan is usually higher than on longer term loans. (2) A business loan in which ...
Same as term income statement: Also called profit and loss statement. A financial statement depicting a business entity's operating performance and reports the components of net income, ...
See Board of Equalization. ...
Same as term one-hundred-percent location: Precisely the optimum location for a retail business establishment in an urban central business district (CBD). A one-hundred-percent-location ...
The definition of a testator in real estate is an individual who makes or leaves a valid will detailing how their possessions are to be divided or distributed among their heirs. The ...
Bond collaterized by real assets. Two kinds of mortgage bond are senior mortgages and junior mortgages. A mortgage bond may have a closed-end provision that prevents the firm from issuing ...
Precalculated tables providing the present values of $1 or an annuity of $1 for different time periods and at different discount rates. ...
Also called investment property. Real property held by a business for investment potential or in order to earn income by leasing or letting it, rather than for its own use. ...
Offering price. ...
Comments for Reversion
I need to find a broker to revert the sale of my home. I wish to buy it back.
Oct 13, 2020 06:54:21Hey, Arturo! Unfortenately, there are very few cases where reverting the sale of a home is possible. Reversion, as described in the glossary, is refering to a very specific scenario where the house is return only if some conditions are meet. If your agreement doesn't feature any terms and conditions where reverting the sale is possible, then after you have agreed upon the sale with your own signiture, there is no turning back. We have an article talking about different kinds of listing and what you need to know when hiring an agent or broker. Hope you find it useful!
Oct 23, 2020 05:36:45Have a question or comment?
We're here to help.