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!
A relinquishment deed is a document through which a co-owner releases his/her share for another heir in parental property. In simple terms, when a co-owner of an inherited property gives away his/her interests, title and rights to the other property co-owners, this deed comes into existence.
In contrast to gift deeds, transfer deeds and sale deeds, relinquishment/release deeds are implemented between the legal heirs of a property. It is not mandatory for a release to pay a consideration for acquiring the releasor’s rights. Furthermore, this deed is not legally valid until it is registered.
Let’s have a better understanding through the following example:
Suppose three daughters, namely Mita, Gita and Rita, inherit a huge property in Bangalore after the demise of Mr. Rajiv Mehta, their father. He has not kept any will for this property. Gita and Mita work in Chennai and Hyderabad, respectively. So, it is difficult for them to manage their ancestral property.
They decide to transfer their shares to Rita, who stays in Bangalore. Furthermore, they create a relinquishment deed without consideration. This deed requires to be registered for formalising the procedure.
Even if Mita and Gita take any consideration for transferring their rights, they will have to draft a similar deed to make it legally valid.
A relinquishment deed is essentially required to abolish a claim previously made on a property or asset. This need to release from an agreement generally appears when the owner of the asset or property suddenly passes away without leaving a will, and the legal heirs of the property want to pass the ownership to a co-owner.
This deed can only be created between two co-owners. It is ideal to get it registered as soon as it is ready.
Refer to the following relinquishment deed format for immovable property to ensure a hassle-free transaction:
Relinquishment Deed Format
*Image Source: NSDL
An owner can transfer his property rights by various legal means. However, the transfer of rights through a relinquishment deed is only valid when the property is inherited. These would include all the ancestral properties on which you have inherited rights and also any self-acquired property of your father in case he dies without a Will.
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.
Here is the step-wise process of registering a relinquishment deed which both parties need to follow:
Draft a relinquishment deed on stamp paper of Rs.100 mentioning every particular. Make sure that all the details are covered, and there should be no error in terms of typing and spelling.
Also, the language used in the draft should be clear and straightforward so that the deal is clear to all the parties concerned.
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.
You have to pay a nominal fee ranging between Rs.100 and Rs.250 for registration of the relinquishment deed.
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.
A relinquishment deed is registered to enable the co-owners to legally transfer their share in the property to another co-owner. As per Section 17 of the Registration Act, a relinquishment deed must be systematically registered as it is a legal document by which a person formally gives up his claim to another person.
Here are the vital elements of release deeds for your ready reference:
One can make and register a release deed within a few days through an inexpensive procedure.
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.
All the concerned parties should put their signatures on the deed of relinquishment in the presence of two witnesses (minimum).
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.
Such a deed cannot be altered even if it doesn’t involve any consideration.
A release deed can be executed with or without paying any consideration.
An owner who has released his/her property share may revoke a relinquishment deed based on the following grounds:
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 cancelling the deal.
As per the provisions of the Limitation Act, a release deed can be revoked within 3 years starting from the day on which the deal was made.
Through a gift deed, an owner can transfer his/her property to another individual. However, it differs from a relinquishment deed in the following ways:
|Gift Deed||Relinquishment Deed|
|It is a deed through which an individual gifts his/her property rights to any individual.||It is a deed through which a co-owner releases his/her property rights for the other co-owners only.|
|The concerned property may not be inherited parental property.||The property has to be an inherited parental property.|
|Gift deeds do not involve any consideration.||Release deeds may or may not involve compensation.|
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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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