What does the term reversionary interest refer to?

The term reversionary interest refers specifically to the remnant of an estate that remains with the grantor after granting a life estate. In real estate law, when a property owner gives a life estate to another individual, the original owner retains a future interest in the property, which is known as a reversion. This means that once the life tenant’s rights end—typically upon their death—the property reverts back to the original owner or their heirs. This concept is crucial in understanding property rights and interests, as it outlines the future ownership status of a property once a life estate is no longer in effect.

The other options reflect different concepts related to property rights but do not accurately define reversionary interest. The right to sell a property after leasing pertains to the ownership or leasing rights, while the right to renew a lease agreement involves lease terms and obligations rather than future interests in estate. The obligation to maintain a property relates to property management responsibilities and does not connect to the concept of ownership succession inherent in reversionary interest.