Post
Question
Vested Interest
The Vested Interest, mentioned in Section 19 of the Transfer of Property Act, 1882 is an interest that is designed in favour of an individual where the time is not mentioned but on the happening of a certain event, the property transfer takes place.
Contingent Interest
The Contingent Interest as mentioned in Section 21 of the Transfer of Property Act 1882, the transfer of a property will take place if an uncertain event happens as per the condition.
Difference between vested interest and contingent interest
The difference between vested interest and contingent interest is that vested interest happens when a certain incident takes place. But in the case of a contingent interest, the condition mentioned is very much uncertain and so the transfer of property may or may not happen if the condition is not fulfilled.
You can opt for NoBroker Legal Assistance anytime to get answers to your more legal queries.
You must have got a brief idea about the difference between vested and contingent interest now.
Read More:
What Is Lease Under Transfer Of Property Act?
What Is Transfer Of Property?
What Is The Procedure For Transfer Of Property To Legal Heirs? | Vested Interest | Contingent Interest |
| Vested interest is independent of any condition being met. Even though the fulfilment is postponed to a later time, it immediately generates a right. | Contingent interest is only dependent upon the completion of any requirement. The interest is lost if the condition is not met. |
| Even if the transferee passes away before taking possession, vested interest is not destroyed. | If the transferee passes away before getting possession, contingent interest is lost. |
| It is heritable and transferable. The vested interest passes to the transferee's heirs if he passes away before taking possession or benefiting it. | It is Transferable, however, the nature of the condition will determine whether it is Heritable. It does not pass to an heir with the passing of the transferee who obtained the transfer. |
| Even when enjoyment is delayed, there is still an immediate, present right. | There is only a promise to grant such a right; there is no actual right to enjoy it. |
| Parameters | Vested Interest | Contingent Interest |
|---|---|---|
| Section | The vested interest in TPA is under Section 19 of Transfer of Property Act, 1882. | Contingent interest in TPA is under Section 21 of Transfer of Property Act 1882. |
| Define | This is an interest that is created for a person without regard to time or event, with the expectation of getting property upon the occurrence of a specific event. | This is formed for a person in anticipation of an undetermined event, with a hope of receiving property if the criteria is met, but not if the condition is not met. |
| Situation | Condition in this refers to a certain, forthcoming event. | A condition in this is an uncertain event that may or may not occur. |
| Accomplishment of conditions | Vested Interest immediately creates a present right while delaying enjoyment until the transfer's allotted time. | Contingent interest is dependent on the transfer condition, which means that interest is only transferred upon fulfillment. |
| Rights of ownership | As soon as the interest becomes vested, this right is established. | There is a limited chance of acquiring ownership rights. |
| Death of transferee | Deceased person's interest will vest in legal heirs. | Transferee's death results in the loss of the continent interest; the property remains with the transferor. |
Difference Between Vested And Contingent Interest
Shivam
✔In Progress
👁15961
Views
April 26, 2022
2022-04-26T20:05:09+00:00 2023-02-17T15:26:20+00:00Comment
3
Answers
Legal
Share