Question

    When is an interest in property considered "vested"

    under the transfer of property rules?
    A When the interest is created in favor of a person, specifying it to take effect only after the death of the transferor Correct Answer Incorrect Answer
    B When the interest is created without specifying the time when it is to take effect, or specifying it to take effect forthwith or upon the happening of an inevitable event Correct Answer Incorrect Answer
    C When the interest is created with a condition precedent that may or may not happen Correct Answer Incorrect Answer
    D When the interest is created with the requirement that it will only take effect on the transferor's explicit consent Correct Answer Incorrect Answer
    E When the interest is created in favor of multiple parties with conflicting timelines Correct Answer Incorrect Answer

    Solution

    Transfer of Property Act: Section 19. Vested interest—Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer.

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