What is a Relinquishment Deed?
A Relinquishment deed is a legal instrument that a person uses to formally release his legal rights of immovable property and relinquishes it in the name of some other person. This is one of the ways in which people transfer their immovable properties. In India, this deed falls under the purview of the Registration Act, 1908. The execution and registration of the deed is similar to the compliance laws of the act.
Parties involved in a Relinquishment Deed
This is the person (heir) who is releasing his legal rights of the immovable property and relinquishes it in the name of the co-owner of the said property. It can be one or more of the existing shareowners of the Property.
This is the co-owner of the property who will be getting the benefit of the relinquishment deed.
Some Important Rules to be Considered
Who can Relinquish a Property?
Only a co-owner of immovable property has the right to Relinquish a Property.
In Whose Name Can a Property Be Relinquished?
A Relinquishment can only be in favor of a person who is a co-owner of the immovable property. If the relinquishment is done in favor of a 3rd person, it is treated as a gift.
Relinquishment favoring a Minor
An immovable property may also be in favor of a minor. In this case, the rules of the Indian Contract Act, 1872 will apply
Key Elements of a Relinquishment Deed
It is a Legal Document
A Relinquishment deed is a legal document through which an heir of immovable property can release his legal rights of the inherited property.
The Document Must be in Writing
This document has to be in writing in the form of a Relinquishment Deed. It must be signed by all parties involved and there must also be two witnesses.
Mmay or may not involve Consideration
A Relinquishment deed can be executed with or without any consideration.
It is Considered Irrevocable
This deed is considered irrevocable even if it is done without any consideration. Further, for it to be considered a valid relinquishment the immovable property in question must be owned by more than one person.
Need for Registration
A Relinquishment deed falls under the purview of Section 17 of the Registration Act, 1908. Therefore, its registration is mandatory at the concerned sub-registrar office within whose jurisdiction the property is situated.
Relinquishment Cannot be in Favor of a 3rd Person
A Relinquishment cannot be in favor of a Person other than a co-owner of the immovable property. However, if it is relinquished in favor of a 3rd person, it is treated as a gift.
Contents and Format of Relinquishment Deed
The deed must contain a title that clearly mentions that it is a Relinquishment deed. Further, it should also have the date of creation of the document.
Details of the Executant(s)/Releasor(s)
The Executant(s)/Releasor(s) is the person (heir) who is releasing his legal rights of the immovable property and relinquishes it in the name of the co-owner of the said property. The executant needs to provide common details related to name, father’s name, DOB, etc. in the form.
Details of the Releasee
The Releasee is the co-owner of the property. Additionally, he/she is the person who is relinquishing the property to the other co-owner. Moreover, the releases needs to share details such as full name, father’s name or husband’s name, residential address, etc.
Description of the Property
It is important to include the description of the property in the deed. Additionally, the detail of the last absolute owner is necessary. Further, the executant should ensure that every minute detail of the property such as a complete address, survey number, registration details, sub-registrar office details, etc are correct.
Purpose of Creation
The purpose for the Relinquishment deed must be clearly mentioned so there are no disputes moving forward.
Details of the Heirs of the Property
The details of the heirs of the property and their relationship with each other is necessary for the deed along with other details like their age, complete address, etc.
Due to the absence of a will, the property will be distributed among heirs based on the Succession Act. So. the proportion of each owners’ share is necessary during the creation of the deed.
Finally, the most important clause of the deed is the mentioning of the executants/releasors releasing their shares in the property in favor of the releasee. In the deed, there is a declaration announcing that that moving forward the executant/releasor shall have no claim over the said property
Signatures of the Parties Involved
The document needs the signature of the executants and two witnesses before the Sub-registrar office. After this step, the relinquishment deed is official.
The Procedure of Registration of Relinquishment Deed
A Relinquishment deed falls under the purview of Section 17 of the Registration Act, 1908. Therefore, you must register it at the concerned sub-registrar office within whose jurisdiction the property is situated.
These are the steps you need to follow for the Registration of the Relinquishment Deed
Step 1: Preparing a Relinquishment Deed
Lawyers can prepare a Relinquishment Deed on a stamp paper of Rs.100. They need to include all contents mentioned above.
Step 2: Presenting the deed to the Sub-Registrar
Once the deed has been prepared on a stamp paper it must be presented to the concerned sub-registrar office within whose jurisdiction the immovable property is situated. This procedure will also include registration fees. However, the amount varies from state to state but is somewhere between Rs. 100 to Rs. 250.
Step 3: Signature of the Parties involved and the Witnesses
The Relinquishment Deed needs signature from the executants/releasors and also the releasee. After this, two witnesses must sign the document to make it official. The witnesses need documents like passport size photos and ID Proofs. After the signing, the document gains the registered status.
Example of a VALID Relinquishment
Rajeshwari wants to marry Rohan next month. However, her father wants his daughter to sign a relinquishment deed of their property before she goes to her new home. She receives liquid cash for relinquishing her rights to the property in favor of her two brothers. Now, her brothers are the owner of the property. Conclusively, this is a valid Relinquishment.
Example of an INVALID Relinquishment
Ramakant dies leaving behind an estate for his three sons Ravi, Prem, and Mahesh. Moreover, these three brothers have equal share on the property. However, Prem due to some personal reasons decides to relinquish his rights to the property and releases it in favor of his friend Rekha for consideration. This is an invalid Relinquishment since Rekha is not a co-owner of the estate.
Can you challenge a Relinquishment Deed?
Yes. You can challenge a Relinquishment Deed under these grounds:
- Undue influence,
Therefore, the deed can only be canceled if there is a lack of free consent. However, all parties need to favor the cancellation. Additionally, if the beneficiary person is not willing to cancel the deed then a case may be filed in the civil court for the cancellation of the deed.
It is important to note that the statute of limitations for challenging the Relinquishment deed commences from the day the right has been infringed. The limitation period is 3 years as per the Limitation Act.
Hiring a Lawyer
While the aforesaid are the broad guidelines with regard to drafting a relinquishment deed, a client should seek expert advice on the subject before you get it registered. However, you may need a good property lawyer who can handle the systematic legal compliances and needed documentation for drafting the relinquishment deed.
If you are thinking about releasing your share of a property to your loved one and are in search of a lawyer then visit our website and Register now to get in touch with local lawyers in your area.
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Therefore, to sum up it can be said that a Relinquishment Deed is ideal for someone who is looking for a seamless transfer of property when it is jointly owned. It is especially useful in the event of a death and there is no will written by the deceased.