What is a Relinquishment Deed? – Meaning, Format, Documents, Benefits and Procedure
A property may have more than one heir. In case one of the property owners want to give up their share or rights to the inherited property, they must sign a relinquishment deed. Such a deed is applicable to joint Hindu properties in India. It ensures that the other co-owners have complete legal rights to the property.
This article helps understand the legalities of a relinquishment deed, its format, registration, key elements and how to revoke a relinquishment deed. Read on!
What is a Relinquishment Deed?
A relinquishment deed is a legal document that transfers the ownership of a property from one person to another. It is commonly used in cases where a co-owner or a legal heir wishes to transfer their share of the property to another co-owner or legal heir.
A relinquishment deed is a voluntary act and is usually executed when the parties involved are in agreement with the transfer. The deed must be signed by the person who is relinquishing their share of the property and must be attested by two witnesses. The document is then registered with the relevant authority to make it legally binding.
Relinquishment Deed Format
Refer to the following relinquishment deed format for immovable property to ensure a hassle-free transaction:
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Objectives Relinquishment Deed
The main objectives of a relinquishment deed are to transfer the ownership of a property from one party to another in a legal and transparent manner. It is commonly used in cases where a co-owner or a legal heir wishes to transfer their share of the property to another co-owner or legal heir.
The deed helps to avoid disputes over the ownership of the property and ensures that the transfer is done with the consent of all parties involved. It also helps to establish the clear title of the property and can be used as evidence in case of any legal disputes.
How to Register a Relinquishment Deed?
- Step 1
Draft a relinquishment deed on stamp paper of ₹100 mentioning every particular – like details of the releasor, release, property, statement of purpose, list of heirs, relinquishment, signatures and conclusion. Ensure there are no spelling errors.
- Step 2
Visit the Sub-Registrar’s office of the concerned locality along with the parties involved and two witnesses. Everyone involved must carry originals, photocopies of their identity, address proofs and passport-size photos.
- Step 3
You have to pay a nominal fee ranging between ₹100 and ₹.250 for registration of the relinquishment deed.
- Step 4
If the Sub-Registrar finds the details provided in the document and the proofs to be valid, he/she will create a registered relinquishment deed within a week. You can then visit the office and collect your deed.
When to Create a Relinquishment Deed?
1. Death
If an individual dies without a Will, it’s called an interstate death. On such occasions, a relinquishment deed could be necessitated for the transfer of ownership of a property. It could also help in clarifying, for example, which legal heir owns which part of the property, who is in charge of property maintenance, etc.
2. Divorce
A relinquishment deed would be required when a spouse wants to relinquish his/her share in the property in the name of the other spouse as a part of the divorce settlement.
3. Urgent Need of Funds
If a co-owner of the property wants to liquidate his/her share to raise urgent cash, he/she would require a relinquishment deed.
4. Minor Legal Heir
If the legal guardian of a minor legal heir wishes to relinquish the former’s estate for another legal heir, he/she would require a relinquishment deed on behalf of the minor after securing a court approval.
5. Goodness of Heart
If a legal heir or co-owner wants to relinquish his/her share in the property to another co-owner out of goodness of heart, he/she would require a relinquishment deed to do so.
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Who Can Create a Relinquishment Deed?
Only the legal heirs of the property or asset can relinquish their shares in that property. The deed lets the legal heir transfer his/her constitutional rights in an inherited property in an act of kindness to other legal heirs.
Points to Remember while Drafting a Relinquishment Deed
1. Quick Procedure
One can make and register a release deed within a few days through an inexpensive procedure.
2. Mandatory Registration
According to Section 17 of the Registration Act of 1908, it is compulsory to register the transfer of shares in an immovable asset. The registration gets executed in the Sub-Registrar’s office under whose jurisdiction the inherited property is located.
3. Mandatory Signature
All the concerned parties should put their signatures on the deed of relinquishment in the presence of a minimum of two witnesses.
4. Third Person not Eligible for Release Deed
Relinquishment of rights in immovable property cannot be processed in favour of an individual who isn’t a co-owner. When a property co-owner releases his/her shares in favour of a third person, it will be considered a gift.
5. Unalterable
Such a deed cannot be altered even if it doesn’t involve any consideration.
6. Consideration
A release deed can be executed with or without paying any consideration.
Documents Required for Relinquishment Deed
- Legal and registered documents of the property
- A written document stating intention of relinquishment
- Details of all co-owners
- Relinquishment deed particulars
- Name, age and address of the releasor and releasee
- Description of the property
- Details of the consideration (if required)
- Aadhar Card, ID Proofs of the parties
- PAN card of both the parties
- Any other agreements related to the property
- Any other documents required by the authorities
Benefits of a Relinquishment Deed
1. Simplifies the Transfer of Property
A relinquishment deed simplifies the process of transferring property from one family member to another, as it eliminates the need for a sale deed
2. Avoids Legal Disputes
By relinquishing their rights to the property, family members can avoid legal disputes over property ownership and inheritance
3. Smooth Succession Planning
A relinquishment deed can be used as part of succession planning to ensure the smooth transfer of property from one generation to the next
4. Faster Processing
A relinquishment deed can be processed quickly, which can be beneficial when there is an urgent need to transfer ownership of the property
5. Legal Protection
A relinquishment deed provides legal protection to the parties involved, as it establishes a clear record of the transfer of ownership
6. Cost-effective
It is a cost-effective method of transferring property rights without going through a lengthy legal process
Can the Deed of Relinquishment be Revoked?
An owner who has released his/her property share may revoke a relinquishment deed based on the following grounds:
- If there has been a misinterpretation of his/her intention in the document
- When someone has influenced or forced him/her to sign the deed
- In case of a fraudulent act to deceive him/her
All the parties who have signed the document should cooperate during the cancellation process. The aggrieved party can approach the court if a beneficiary denies cancellation of the deal.
Final Word
Since a relinquishment deed allows the co-owners to give up their property rights for any other co-owner of the parental property, it should be systematically registered and executed. One may consult a lawyer to draft the deed properly. However, individuals who understand the legal terminology and methodology can prepare the deed on their own.
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FAQs
A situation may arise when co-owners cannot visit the office of the sub-registrar due to any disability or terminal illness. In this case, they may place an application before the office of the sub-registrar to finish the registration procedure at home. A registering officer can visit the house of such an individual as per Section 31 of the Registration Act.
One can use these terms interchangeably as they mean the same. Co-owners of an inherited property can release their shares in the property through relinquishment of rights. The deed prepared for this purpose is called a release/relinquishment deed.
Yes, a co-owner can transfer his/her legal rights or shares in an inherited parental property to a minor by way of a release deed. In this case, provisions of the Indian Contract Act, 1872 will be applicable.
Yes, there are stamp duty charges for registering a relinquishment deed. However, such charges are higher for a gift deed registration. According to Section 17(1)(b) of the Registration Act of 1908, it is mandatory to register a document through which a right is transferred or created with respect to a property.
An inherited property is only eligible for a relinquishment deed. It includes an ancestral property on which an individual has a birthright according to Hindu Succession Law.
