A relinquishment deed is a legal document wherein a legal heir gives up his or her legal rights to inherited property in favor of the other heirs. The relinquishment deed facilitates the transfer of ownership when the person dies intestate, and the legal heir who inherits the property, transfer his or her shares in favor of another legal heir/ co-owner of the same property. A relinquishment deed will be transferred either for consideration or without consideration. However, in order for the transfer to be a release or relinquishment, the parties involved all must be the co-owners of the said property.
ADVANATAGES OF A RELINQUISHMENT DEED
- A relinquishment deed facilitates the seamless transfer of property when it is jointly owned by more than one person.
- A relinquishment deed helps to transfer property, in the event of a death and no will has been created by the deceased individual or intestate
- A relinquishment deed permits a legal heir to transfer ownership of his or her inherited property to the legal heirs of the property
CHECKLIST FOR A RELINQUISHMENT DEED
- A relinquishment deed is considered a legally binding document. It is used to relieve the legal rights of an heir from an inherited property to another heir
- A relinquishment deed must be registered under section 17 of the 1908 registration act to be considered as a legal document
- A relinquishment document must be a written document signed by all the parties involved, in the presence of two witnesses
- A relinquishment deed must only be used to transfer rights to an inherited property among co-owners, and not to any other third party
PROCEDURE TO DRAFT A RELINQUISHMENT DEED
The drafting of the Relinquishment deed will commence from when the required information is shared by the client to our team of lawyers at ACE ALLIANCE. Once the information is shared, a lawyer will be assigned to you. The charges paid by you will be inclusive of the first draft of the relinquishment deed which will be sent across to you in 2-3 days. A total of 3 iterations to the relinquishment deed are offered to you as part of the package. The relinquishment deed will be prepared by the lawyer assigned to you from ACE ALLIANCE. The deed will be registered under section 17 of the 1908 Registration Act. The ACE ALLIANCE lawyer assigned to you will co-ordinate with the Sub-Registrar’s office and get you a date for the registration process. After this you and the other parties involved have to go to the Sub- registrar’s office to sign the relinquishment deed along with two witnesses of your choice.
DOCUMENTS NEEDED FOR THE CREATION OF THE RELINQUISHMENT DEED
- The particulars are needed for the Release deed
- The name of the releasor, his or her age and address
- The name of the Releasee, his or her age, and address
- The description of the property
- If release is basis payment of consideration, then the details on consideration
FAQS ON RELINQUISHMENT DEED
IS THE RELINQUISHMENT DEED CONSIDERED A LEGAL DOCUMENT?
The Relinquishment Deed is a legal document, which allows a legal heir to transfer or release his or her legal right of inherited property to another legal heir of the same property.
WHAT ARE THE EFFECTS OF A RELINQUISHMENT DEED?
The consequences of a relinquishment deed are the release of the shares of one co-owner which results in the increase of shares for the other co-owners.
IS CONSIDERATION IMPORTANT IN A RELINQUISHMENT DEED?
A relinquishment deed exists with or without consideration.
IS IT MANDATORY TO REGISTER THE RELINQUISHMENT DEED?
The Relinquishment deed comes under the purview of Section 17 of the Registration Act, 1908. Hence a release of rights in the immovable property have to be registered.
WHO IS ALLOWED TO RELINQUISH A PROPERTY?
The relinquishment of property can be done only by a person who has a share in the said property. If there is more than one owner in a property, either of the co-owners can do this relinquishment. For a relinquishment to be valid, the essentials of a valid contract have to be followed other than the compensation.
UNDER WHOSE NAME CAN A PROPERTY BE RELINQUISHED?
The relinquishment of property can only be done in the name of a person, who is a co-owner of the property. The relinquishment cannot take place in the name of a third party. Thus, a valid relinquishment involves the release of rights to that property by a legal heir.
CAN A PROPERTY BE RELINQUISHED TO A MINOR?
A property is allowed to be transferred to a minor, but that will be governed by the Indian Contract Act, 1872.
CAN A RELINQUISHMENT DEED BE REGISTERED IN A PERSON’S PRIVATE RESIDENCE?
Under Section 31 of the registration act, a provision allows the registering officer, on show of special cause, if the person is physically handicapped, to attend at the residence of such a person, who desires to present a Relinquishment Deed for registration. For a registering officer to accept such a registration request, he or she must be satisfied that the particular cause provided is sufficient
WHAT ARE THE OTHER PROCESSES TO REGISTER A RELINQUISHMENT DEED?
For a relinquishment deed the signatures of two witnesses is required to get it registered. Other documents such as passport size photos, identity proof documents such as the driving license, Aadhar card, etc. of the witnesses is needed.
IS A GIFT AND RELINQUISHMENT DEED ONE AND THE SAME?
No. A gift deed and relinquishment deed are used for different kinds of transfer of property.
WHAT ARE THE DIFFERENCES BETWEEN GIFT AND RELINQUISHMENT DEED?
A Relinquishment Deed gives an individual the right to release or transfer his or her legal rights to the property. Whereas, a gift Deed enables one person to gift his or her legal rights in a property to any other person. In a relinquishment deed, the property relinquished is always an inherited property. Whereas when a property that is gifted may not necessarily be an inherited property. The person in whose favour the property is relinquished has to be the co-owner of the property. That’s not the case when a property is gifted. It can be gifted to any person of the owner’s choosing.