What is Relinquishment Deed

A property may have multiple heirs. If one of the property owners wishes to resign their portion or rights in the inherited property, they must sign a relinquishment deed. In India, such a deed applies to shared Hindu properties. It assures that the other co-owners have full legal ownership of the property.

This article explains the legal aspects of a relinquishment deed for the property, including its format, registration, crucial parts, and how to cancel one. Continue reading!

What is a Relinquishment Deed?

A relinquishment deed is a legal instrument that transfers property ownership from one individual to another. It is in use when one co-owner or legal heir seeks to transfer their portion of the property to another co-owner or legal heir.

The relinquishment deed under the Transfer of Property Act is a voluntary act usually carried out when the parties concerned consent to the transfer. The deed must be signed by the person abandoning their portion of the property and witnessed by two people. The document is then registered with the appropriate authorities to become legally binding.

How to Register a Relinquishment Deed?

In a relinquishment deed registration, you have to go through the steps as follows:

• Step 1: Draft a relinquishment deed on 100 stamp paper, including every information – such as the releasor’s details, release, property, statement of purpose, list of heirs, relinquishment, signatures, and conclusion. Ensure there are no spelling mistakes and that the relinquishments deed format is as prescribed.
• Step 2: Go to the Sub-Registrar’s office in the affected area with the parties involved and two witnesses. Everyone engaged must provide originals, photocopies of their identification, proof of address, and passport-size pictures.
• Step 3: The relinquishments deed charges from Rs 100 to Rs 250 for registration.
• Step 4: If the Sub-Registrar believes the information in the paper and the proofs are correct, they will prepare a registered relinquishments deed within a week. You can then go to the office and pick up your deed.

To read on Whether Registration of Sale Deed Is Necessary? Click Here

When Should You Prepare a Relinquishment Deed?

• Death: An interstate death occurs when a person dies without a Will. A relinquishments deed to transfer property ownership in such cases may be required. It also helps determine who owns specific parts of the property, who is responsible for property care, etc.
• Separation/Divorce: A relinquishment deed is necessary when one spouse wishes to abandon their portion of the property in the other spouse’s name as part of the divorce settlement.
• Immediate Funding Requirement: A relinquishments deed is required if a co-owner of the property wishes to liquidate their part to raise emergency funds.
• Legal Heir who is a Minor: Suppose the legal guardian of a minor legal heir chooses to renounce the former’s estate for another legal heir. In that case, they must obtain court consent and execute a relinquishments deed on behalf of the minor.
• Heartfelt Goodness: A relinquishment document is required if a legal heir or co-owner wishes to relinquish their share of the property to another co-owner out of goodwill.

What are the Required Documents for a Relinquishment Deed?

• The property’s legal and registration documentation.
• A statement in writing of the intended surrender.
• Information on each co-owner.
• Details of the relinquishment deed.
• The releasee’s and the releaseor’s names, ages, and addresses.
• The property’s description.
• The consideration’s specifics (if necessary).
• ID and Aadhar Card PAN cards for both parties serve as evidence of the parties.
• Any other agreements involving the property.
• Whatever other paperwork the authorities may require.

To Read on Shareholder’s Agreement, Click Here

What are the Advantages of a Relinquishment Deed?

• Facilitates Property Transfer: Transferring property from one family member to another is more straightforward than a relinquishments deed because it does not require a sale deed.
• Prevents Legal Conflicts: Family members might avoid legal battles over property ownership and inheritance by giving up their rights to the property.
• Easy Transition Planning: A relinquishments deed can facilitate a smooth property transfer from generation to generation as part of succession planning.
• More rapid processing: When there is a pressing need to transfer ownership of the : , the speed with which a relinquishments deed can be performed can be helpful.
• Legal Defense: Because it creates a transparent record of the transfer of ownership, a relinquishments deed offers the parties concerned legal protection.
• Reasonably pricedIt is a practical way to transfer property rights without a drawn-out legal procedure.

End Note

One should systematically record the relinquishment document since it enables the co-owners to assign their ownership interests to any other co-owner of the parental property. To draft the deed correctly, one should consult a lawyer. However, those familiar with legal jargon and procedures can draft the deed themselves.