What is the reversionary interest?

• A. The lessee's obligation to restore property
• B. The right of the lessee to renew the lease
• C. The right of the lessor to sell the property during the lease
• D. The lessor's right to regain possession after the lease ends

Answer: (D)

Reversionary interest is the landlord’s future right to regain possession of the property after the tenant’s lease term ends. When a lease is granted, the owner holds a leasehold for the period, but they keep a reversionary interest—the claim to retake possession once the term expires (unless a new tenancy is created or another arrangement takes over). This concept is about what remains with the owner after the tenant’s rights expire, not about duties during the tenancy or rights to renew. So the right described is the lessor’s right to regain possession after the lease ends.