My lawyer friend has recently explained the rule against perpetuities to me. Let me tell you about it.
If You Want Help in Drafting a Sale Deed, Checking Property Documents, etc., then Avail NoBroker’s Legal Services
Perpetuity refers to something that’s unending or perpetual in nature. As per the Rule against Perpetuity under the Transfer of Property Act, an individual can enjoy the rights related to his property during his lifetime. However, the rule Against perpetuity imposes some restrictions on the transfer and use of the property.
Now you know what is rule against perpetuity.
Transfer of Property Act, 1882 (Section 14)
This section deals with “Rule Against Perpetuity”. According to this section, a property cannot be vested beyond an individual’s lifetime or after the expiration of an unborn child’s minority period. This rule has imposed some restrictions on the property’s transfer period beyond which the transfer becomes void.
Essential Element of Transfer of Property Act, 1882 (Section 14)
There needs to be a property transfer.
The transfer should create an interest in favour of the ultimate beneficiary i.e, an unborn child.
The transfer in the favour of the unborn child needs to be preceded by the life or life interest of a living individual.
The ultimate beneficiary needs to be in existence (either born or in the mother’s womb) at the expiration of the living individual’s interest.
Transfer of property may be postponed only up to the life of a living person and the ultimate beneficiary’s minority; but not beyond that.
Rule Against Perpetuities Examples:
Ram transfers property to Shyam for a lifetime and then transfers it to Shyam’s unborn daughter when she turns 27. The said transfer becomes void because it’s exceeding the time period of perpetuity i.e, minority.
Read more:
What is lease under Transfer of Property Act?
What is immovable property under Transfer of Property Act?
What is part performance in Transfer of Property Act?
What is exchange under Transfer of Property Act?
This is all you need to know about the rule against perpetuities.
What is rule against perpetuity?
Aanchal
2438 Views
1
2 Year
2022-08-17T17:22:43+00:00 2022-08-17T17:50:54+00:00Comment
Share