Section 31 of TPA : Section 31: Condition That Transfer Shall Cease To Have Effect In Case Specified Uncertain Event Happens Or Does Not Happen

Explanation using Example

Imagine that a homeowner, Mrs. Gupta, decides to transfer her vacation home to her nephew, Raj, with a condition. The condition is that Raj must use the property as a primary residence for at least five years. If Raj fails to meet this condition, the property will revert back to Mrs. Gupta or her estate.

Two years after the transfer, Raj receives a job offer in another country and decides to move, renting out the vacation home instead of living in it. According to Section 31 of The Transfer of Property Act, 1882, the interest Raj had in the vacation home would cease to exist because he did not fulfill the condition of using the property as his primary residence for the specified duration of five years.