Some restrictions on property are limited in their duration, often either through the express terms of the instrument or by statute. In a May 18, 2018 Massachusetts real estate case, the issue concerned the water usage rights of a local town in a lake located on the defendant’s property. The parties disputed whether the town still had the rights, or whether the rights had since reverted back to the owner of the lake.
In 1958, the prior owner of the defendant’s land had conveyed flowage and usage rights of the lake to a business entity. The entity, in turn, conveyed the rights to the town in 1972. These rights were subject to a reversionary interest in favor of the grantor and his successors. This meant that, if certain conditions were not met, the town would lose its rights in the lake, and they would return to the current owner of the property. Specifically, if the town failed to maintain the dams or impound the waters of the lake as agreed in the 1958 conveyance, the grantor or their successors could, at their option, record a written declaration that would effectuate their reversionary interest.
In 2016, the defendant recorded an instrument that purported to effectuate its reversionary interest in the rights that were conveyed in 1958. The town, in turn, filed an action seeking to quiet its title to the flowage and usage rights it obtained in 1972. Although the town conceded that it had not maintained the dams and impounded the waters of the lake, as required by the conveyance, it argued that under Massachusetts law, the original grantor or successors had only 30 years to make the necessary record to effectuate their reversionary interest. The town asserted that since they failed to record a declaration within the 30-year period, the town acquired absolute ownership of the flowage and usage rights.