Vested interest

Contingent interest

1.

Relevant section

Section 19 of TPA 1882

Section 21 of TPA 1882

2.

Definition

That is such kind of interest in which the property is transfer by the transferor to transferee

1.     At the initial stage of transfer /immediately just by the intention of transferor to transfer his property to transferee.

2.     Or on the happening of the certain specified event.

3.     At the initial stage of transfer ,when the interest is created in favor of that person even though the time of transfer is not specified

That is such kind of interest in which the property is transfer by the transferor to transferee by the fulfillment of that contingency which mentioned in transfer deed like.

1.     On the happening of the uncertain specified event.

2.     Or, on the non-happening /impossible to happen of uncertain specified event

3.      

Illustration.

Mr. Zain create the vested interest of his younger brother in his property by inserting that condition that ,this property would be transfer to his younger brother after his death [ certain event ]

Mr. Zain create the contingent interest of his younger brother in his property by inserting that condition that ,this property would be transfer to his younger brother if he would die in upcoming 6 month [uncertain event ]

 

4

.

Heritable

As ,vested interest is complete from the initial stage of transfer ,when it is created so that is not end /defeated by the death of transferee if transferee die before the transfer of property ,the transferee is absolute owner so after his death the vested interest property would be heritable property and succeed among his legal heirs .

In contingent interest ,the transferee is not hold the absolute title of property ,he hold when the contingency of transfer deed fulfilled so if he die before happening of contingency ,the property would not be fall as heritable property ,in short the contingent interest defeated by the death of transferee.

5.

Absolute title

Here ,the transferee has the absolute title

Here, the transferee holds the absolute title when the contingency fulfilled.

6.

Take effect /implementation

The vested interest takes effect.

1.     From the date of transfer

The contingent interest take effect

1.     On the happening of contingency

7.

Alienable /transferable

The vested interest can be transferred by the holder of interest of that  property

In contingent interest just the contingent interest can be transferable but that also defeated if the contingency not happen.