What Is A Relinquishment Deed: Format, How To Register And Revoke It

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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.

If one of the co-owners of an inherited property wants to give up their rights to the property, before getting into it, understand the legalities and how to revoke a relinquishment deed. Read on!

Relinquishment Deed: Meaning and Usage

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 releasee 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.   

Key Elements of a Relinquishment Deed 

Here are the vital elements of release deeds for your ready reference:

• Quick procedure: One can make and register a release deed within a few days through an inexpensive procedure.  
• Registration is a must: 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.  
• Signature is mandatory: All the concerned parties should put their signatures on the deed of relinquishment in the presence of two witnesses (minimum). 
• A third person is not eligible for a 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. 
• Unalterable: Such a deed cannot be altered even if it doesn’t involve any consideration. 
• Consideration: A release deed can be executed with or without paying any consideration. 

Format of a Relinquishment Deed 

Refer to the following relinquishment deed format for immovable property to ensure a hassle-free transaction:

*Image Source: NSDL

How to Register a Relinquishment Deed 

Follow the easy steps below to register a relinquishment deed:

Step 1: On a 100 rupees stamp paper, draft the content of the release deed. Ensure that all your details are correct. There should be no spelling or typing mistakes in this draft. Use simple language in the deed so that the nature of the transaction is clear to the parties involved. 

Step 2: Go to the office of the sub-registrar in the concerned jurisdiction. Two witnesses must accompany the parties in question. All of them should carry photocopies and the original documents related to their address and identity proofs. Besides, keep the passport-sized photographs handy.    

Step 3: A fee of Rs. 100 to Rs. 250 will be applicable as a registration charge. 

Step 4: This registered release deed will be available within one week, provided the executive is satisfied with the content of the release deed. One can collect it from the office of the sub-registrar. 

Difference between Gift Deed and Relinquishment Deed 

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:

Provisions for Revocation of a Relinquishment Deed 

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 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. 

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.      

FAQs on Relinquishment Deed

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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.