What term describes the landlord's future interest after a lease term expires?

• A. Reversion
• B. Remainder
• C. Reversionary interest
• D. Fee simple

Answer: (D)

When a lease runs out, the landlord automatically regains possession of the property for the future. That future interest held by the landlord is called a reversion (also known as a reversionary interest). A reversion arises because the landlord originally owned the property in fee simple and, after transferring a leasehold to the tenant for a term, the property will revert back to the landlord when the term ends. This is different from fee simple, which is the landlord’s ongoing, present ownership of the property, not the specific future interest created by the lease. In short, the landlord’s future interest after the lease ends is reversion.