Transfer of Property Act_Rule Against Perpetuity

Rule against Perpetuity

1. Section 14 of Transfer of Property Act, 1882 provides for the Rule against perpetuity.
2. The meaning of perpetuity is indefinite Period. Thus, this rule is against the transfer that makes a property inalienable for an indefinite time. 
3. The rule has come into existence because the law is not in favour of lying up of the property for a long period. It is therefore necessary that the interest should not be created in property beyond the lifetime of person. 
4. Section 114 of the Indian Succession Act 1925 also deals with rule against perpetuity. 
5. There are certain exceptions to the Rule against perpetuity and are are follows: 
• This rule is not apply to the transfers which are made for the benefit of the public. 
• The renewal of lease with a covenant does not affect the rule against perpetuity. 
• It does not apply to personal agreements.
• It does not apply to the mortgagor’s right of redemption
• It does not apply to the vested interests.