When co-owners formally transfer their ownership interest in the estate to a different co-owner it is done by relinquishment deed. This article provides more information about how the relinquishment deed works.
Before learning about how a relinquishment deed works, let us start by understanding what a relinquishment deed is. A legal heir may abandon their entitlement to inherit property in exchange for the other heirs’ good faith by executing a formal document known as a relinquishment deed.
The relinquishment deed transfers the title if a person dies without leaving a will. A co-owner or another legal heir will inherit the legal heir’s rights to the property. Either money will be assigned for the relinquished deeds, or nothing will.
Except in the case where all parties are co-owners of the property, the transfer cannot be released or surrendered. In circumstances of inherited properties, is the transfer of rights to a property feasible through a relinquishment deed?
These would include all of your ancestral properties, to which you are legally entitled by birth under Hindu law, and your father’s self-acquired property if he passes away.
Relinquishment Deed’s Legality
If the following requirements are completed, the relinquishment deed shall be deemed to be legitimate. The scenarios are as follows:
- The individual transferring the property must have a stake in it
- The property given up should be a Joint Hindu Family property, except the father’s self-acquired property (which had no membership rights during the father’s lifetime).
How is The Relinquishment Deed Used?
A relinquishment deed is typically necessary when a property owner dies intestate, that is, without a will, and the legal heirs decide to transfer their ownership stake to a co-owner. Let’s examine a concrete illustration:
Imagine that the three sons of a man who dies without a will inherit a substantial estate in their hometown. Two of the three lads find it challenging to manage the estate in their hometown because they both work at different places.
They have the option to transfer their rights to the third brother, who resides close by the family property, in this scenario. Imagine that the two brothers suddenly decide to give up land ownership. A relinquishment deed would need to be written and filed to formalize the process.
Even if the two brothers wanted to charge for it, a similar deed would be needed to provide the transfer’s legal validity.
Components of the Relinquishment Deed
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It Needs to Be Written
A relinquishment deed, which must be witnessed and signed by all parties by a minimum of two witnesses, is the only legal way to give up rights in the case of immovable property.
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Implications
A similar transfer of rights results in the extension of the other co-owners shares and the discharge of one co-share owner
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There Has to Be Registered
A surrender of immovable property rights must be documented since relinquishment deeds are subject to Section 17 of the Registration Act 1908. Registration should be done at the sub-registrar office
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Unconditional
A release or relinquishment deed is irrevocable, even if it’s made carelessly. Different participants must own the property. An irrevocable registered relinquishment document and the parties cannot back out of it in the event of a change of heart or opinion.
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Simple to Draft
Relinquishment deeds are inexpensive to produce and register, and the process takes only a few days
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There Can Be No Transfer of Property to a Third Party
The only party to whom the property may be transferred is a co-owner. If the relinquishment is made in the name of someone who is not a co-owner, the transaction will be seen as a gift
Benefits of a Relinquishment Deed
- A relinquishment deed enables a seamless transfer of ownership when a property is owned jointly
- .If someone passes away without leaving a will, a relinquishment deed could help in the transfer of their possessions (or intestate)
- .A legal heir may transfer ownership of the inherited property to other legal heirs using a relinquishment deed, which is a formal legal instrument
Information Required For a Relinquishment Deed
- Name, age, and address of the releaser
- Address property details, releasee’s name, and age
- The relinquishment deed must include the fee if the release is subject to payment of a charge
- Information from the PAN and Aadhar cards of a release and releaser
- It was necessary to prepare a document to state the goal
- Legal records regarding the property.
How to Register Relinquishment Deed
The procedures for registering a relinquishment deed are listed below.
- Preparing/drafting a relinquishment document is the first step in the registration process. Advise a lawyer who can draft the deed according to your specifications for legal counsel
- On ₹100 stamp paper, the relinquishment deed must be printed. The deed for the property being ceded must contain all pertinent information
- When the deed is finished, it needs to be submitted to the local sub-registrar
- The registration fee, which varies from state to state, should be paid then
- On the day set aside for the deed’s registration, the parties and two witnesses must schedule an appointment (pay a physical visit) with the sub-registrar office. Bring all required paperwork for the registration and verification process
- A registered relinquishment deed can be obtained one week after the procedure, as mentioned earlier
- A provision has been made under “Section 31 of the Act” that sanctions the registering officer when a person is physically unable to reach the sub-registrar office
- It permits people with physical limitations to visit anyone who wishes to submit a relinquishment deed for registration
- The fact that an unregistered relinquishment document is invalid and cannot be challenged in court must be clear.
What Distinguishes a Relinquishment Deed From a Gift Deed?
Relinquishment is an individual’s legal right to a piece of property released or transferred by a deed. On the other hand, a gift deed is a legal instrument that allows one person to give their legal ownership of a property to another. Gifted relinquishment deed Property does not need to be inherited; only property that is a deed does.
Conclusion
A relinquishment deed is required when a co-owner wants to give up or transfer their share to another owner. After reading the preceding material, you should know what a relinquishment deed is and how to prepare one.
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