Power of Termination

Also found in: Financial

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A future interest in real property whereby the grantor conveys an estate to another, called the grantee, subject to a particular condition, the breach of which forfeits the grantee's interest in the property.

For example, A, owner of Blackacre, might convey the land "To B, but if liquor is sold on the premises, then A may reenter and repossess." A has the power to terminate the interest of B in the land if the condition occurs.

A power of termination is also known as a right of reentry.

Cross-references

Right of Reentry.

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