Property Ownership

Under Texas law, a 'reversionary interest' in a deed means:

AThe grantee can sell the property back to the grantor
BThe property reverts to the grantor or grantor's heirs if a specified condition is violated✓ Correct
CThe property automatically passes to the state upon the owner's death
DA lien holder can reclaim the property after foreclosure

Explanation

A reversionary interest exists when a grantor conveys property subject to a condition, with ownership returning (reverting) to the grantor if the condition is broken. This is associated with fee simple defeasible estates, such as fee simple determinable or fee simple subject to condition subsequent.

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