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
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April 26, 2022
2022-04-26T20:05:09+00:00 2023-02-17T15:26:20+00:00Comment
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