Property transfer is very common in India but the transfer process is not as easy as it seems. There are a lot of legal documents that need to get approved and are based on certain conditions. There are certain laws and rights and the most important of them are vested interest and contingent interest. But do you know their meaning or the difference between vested and contingent interest? If not then let me tell you everything about both.
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 InterestThe 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 interestThe 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.
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You must have got a brief idea about the difference between vested and contingent interest now.
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Property exchanges and transfers occur frequently in an individual's day-to-day life. The Indian Law contains a number of provisions that deal with property-related issues. But, Vested Interest and Contingent Interest are the two primary provisions taken into account for the transfer of a property. There are multiple responses regarding the difference between vested and contingent interest. However, no one mentioned the vested and contingent ownership. Scroll down to get a comparison based on multiple factors.
Differences Between Vested and Contingent Interest
| 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. |
I hope you got an idea on the comparison of vested and contingent rights, ownership and so on.
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Vested Interest and Contingent Interest are the two main interests that are taken into account when transferring a piece of property. According to The Transfer of Property Act of 1882, they are described along with the criteria for property transfers. So let me tell you more vested and contingent interest difference.
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I have listed down some of the main points about vested and contingent interest in property law. It will help you understand the vested and contingent interest transfer of property act.
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. |
This is all about vested interest vs contingent interest.
Vested and contingent interest differences must be clear to you now.
Read More: What is vested interest? Difference between flat and reducing interest rates? What is the difference between fixed and floating interest rates?Your Feedback Matters! How was this Answer?
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Authors Of The Question
Difference Between Vested And Contingent Interest
Shivam
18239 Views
3 Answers
2 Year
2022-04-26T20:05:09+00:00 2023-02-17T15:26:20+00:00Comment
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