Reversion Legal Meaning and Definition

Here is a simplified definition of the legal term Reversion.

Reversion (noun): This legal term refers to the action of returning a property right back to the initial owner, once the rights held by others have ended. It often arises in situations such as trusts, mortgages, or pledges. For instance, when a trust is established with a beneficiary and a residual owner, the property can revert to the residual owner if the beneficiary passes away. The process of this change is called reversion.