Are Relinquishment Deeds Different From Release Deeds By Athulya - November 23, 2018 Last Updated at: Jan 07, 2020 35153 Are relinquishment deeds different from release deeds_ For many people, the terms deed of release and relinquishment deeds are not only puzzling but highly confusing. They assume that both mean the same. While it is true, the terms are fundamentally the same; there are some subtle but significant differences. In this post, we discover them all. What is Relinquishment deed? Relinquishment deeds are legal documents by which a person can give up on his or her legal rights over a property to someone else with their consent. On the other hand, a deed of release, also known as a deed of reconveyance is a legal document used to renounce one’s claims against a specified property. A deed of release can be said to completely release the parties from the previous obligations. One cannot find a major difference between the two. The context of using the terms may vary at times but the actual meaning of the two terms (relinquishment deed and release deed) are fundamentally the same. Check out some of the articles below to find step by step information on company registration, iso registration or income tax-related services. Avail our resources to help you through the process. We are one of the best online service providers in the market for tax registrations and legal documentation. Register a Company PF Registration MSME Registration Income Tax Return FSSAI registration Trademark Registration ESI Registration ISO certification Patent Filing in India For instance, when a person dies without making a will and the property goes to his legal heirs (his two sons). Now one of the sons out of his own wish transfers his rights over the property to his brother due to personal reasons. Here, the transfer of rights is called a relinquishment. In the case of relinquishment, however, the person to whom the deed is being transferred must be interested in taking the property. Also, that person must give complete consent for taking up the entire share of the property. Ask for Free Legal Advice Otherwise, the deed of relinquishment will become void and cannot be legally enforceable. Also, it must be noticed that the relinquishment deed can only be executed towards a member of the family in most cases or a co-owner of the property and not anyone else. What is release dead? In a release deed, however, the deed can be enforced towards anyone who has sheer interest in the property previously, regardless of whether they were coparceners or not. When a person claims a loan from a bank, the bank takes full control of a property pre-owned by the homebuyer as collateral. Once the loan amount is paid in full, the mortgage is transferred back to the owner along with a release deed. Here, the bank is giving away its temporary possession of the mortgage back to its owner through the mortgage release deed. So, in a mortgage release deed, it is not necessary that the parties involved must be relatives or coparceners. A relinquishment deed can only be generated for inherited properties and not for the release of services. But an employment release deed is formed to release both the employer and the employee from previous obligations. Or in some cases to establish the conditions of the severance package of the employee. The employment release deed can also be used to restrain an employee from disclosing certain highly confidential information about the company and/or refraining him from starting his own company with the known information. Registering legal instruments is a very essential part of processing a deed. Requirements of a relinquishment deed: A relinquishment deed is a legal document used to transfer a claim from one person to another. It must be meticulously executed and registered as per Section 17 of the Registration Act,1908. The deed must be drafted in a Rs 100 stamp paper. It should be submitted before the sub-registrar of assurances within whose jurisdiction the property lies along with the registration fees. It also requires the signature of two witnesses to get the deed registered. Even though the release deed must also be registered in the same manner, the deed doesn’t need to be notarized. Generally, any registered deed cannot be revoked simply because the person transferring his/her claim over property has changed their mind. In case of a relinquishment deed, it can be challenged based on the same grounds used for revoking a general contract. It can be Fraud, Undue Influence, Coercion and Misrepresentation. It is also important that both the parties give their consent to the cancellation. Here, both the parties are the person who relinquishes and the person in whose favour the deed is relinquished. Or otherwise, the deed can only be cancelled by approaching the court. However, on the other hand, a release deed, in general, cannot be revoked. Relinquishment deeds and release deeds are both similar to a binary contract and they require the same essentials to become a valid deed. But a relinquishment deed is formed between two parties with or without consideration. Whereas a release deed specifically needs a consideration for being a valid deed. In a nutshell, a relinquishment deed can be called a form of release deed. It can be used only to renounce the claims over an inherited property to a co-owner(s) of the property of the intestate. Relinquishment deeds give the legal rights of a person over a property to someone else with their consent. In such deeds, the two individuals need to be related. A deed of release or a deed of reconveyance renounce one’s claims against a specified property. And in such cases, the two individuals need not be related.