This article describes 10 differences between Vested Ownership and Contingent Ownership.
- Meaning: An estate is said to be vested in ownership when it gives a present right to the immediate possession and ownership of the property. While an estate which gives a present right to the further possession of property is said to be “vested interest”.
- In a vested interest, the transferee’s is already perfect.
- The transferee owns the right absolutely.
The vested interest is heritable.
- A vested interest is not defeated by the death of the transferee before the obtains possession. The property passes to his heirs.
- When an interest is vested, the transfer is complete and the transferee acquires all rights of a full owner.
- Illustration: X promised A, B and C to give Rs. 1, 00,000/- each of them if their marriages occur before his death. B married before the death of X. on such marriage, the gift become a vested one in case of B.
- Fulfillment of condition: It does not depend upon the fulfillment of any condition. It creates an immediate right through the enjoyment may be postponed to a future date.
- The ownership is absolute.
- The investiture fact from which a person derives the right is complete.
- Meaning: Contingent is that which awaits or depends on the happening of an event.
- In a contingent interest, the title is not yet perfect. But it may become perfect. If happen certain condition annexed to the deed.
- The transferee owns it merely conditionally.
- The contingent interest is not heritable.
- A contingent interest is defeated by the death of the transferee before he obtains possession.
- When an interest is contingent, the transfer is not complete.
- If A and C did not marry before X’s death, and not the contingency contemplated did not, therefore, happen. Hence A and C could not take Rs. 1, 00,000/-.
- Fulfillment of condition: It is solely depended upon the fulfillment of the condition so that if the condition is not fulfilled, the property would not be passed.
- The ownership is merely conditional.
- The investiture fact from which a person derives the right is incomplete.