If you are trying to figure out the difference between a relinquishment deed and release deed. This article will end your journey.
Let’s first figure out what a relinquishment deed is and what a release deed is individually. Then, we will make a comparison table to understand the difference between the two. A Relinquishment deed is a legal document where the legal heir of a property, usually a co-owner, gives up his right in favour of another legal heir. The latter may happen to be a co-owner of the property. A relinquishment deed may be executed for consideration or even without consideration; such a deed can be performed. However, the parties to a relinquishment deed must be the co-owners who may, in some circumstances, get the ownership of the property by inheritance and in the absence of a legal will by the original owner.
A relinquishment deed may have various terms to discharge the duties and rights of the parties. Following are a few of such terms
- The date when the right to the property will be given up
- Purpose of giving up the right in the property
- Name and address of the parties involved
- Consideration, if any
- Name of the previous owner from whom property is inherited
- Consent of the party giving up the right in the property
- What other clause did both parties agree to include in the deed
How To Register A Relinquishment Deed
The parties to the deed are required to follow the given below steps to register a relinquishment deed –
Step 1
The parties to the deed are required to draft the deed on INR 100 stamp duty paper stipulating all the terms that they both agreed upon and such a deed should be free from spelling errors.
Step 2
The parties will then be required to visit the nearest sub-registers office along with two witnesses. All the parties should carry a passport-size photograph and identity proof such as an aadhar card. It is advisable to have a photocopy of all the documents.
Step 3
A total of INR 350 will be required to be paid to register the deed with the register.
Step 4
After authenticating the documents to the satisfaction of the register, The documents will be registered in favour of the person who acquired the right to the property.
The above-given steps are inconclusive and may require additional steps in a few circumstances.
Learn More About Register a Relinquishment Deed
The Release Deed
A Release deed is a legal document that frees up your property on which there are prior claims or obligations. A deed is executed to release your property from any earlier charge created when you pay all the dues to the bank. It is a crucial document when you plan to sell your property because only after executing a release deed can you transfer the title to your property to a bonafide buyer.
The effect of implementing the deed is the transfer of the title deed in the name of the owner who may be in possession of the property. Here are a few usual terms in a release deed –
- Date of execution of release deed
- A formal Statement by the bank that the bank has recovered all the legal dues
- Name and the address of the bank branch
- The description of the property
- Signature of the parties involved
- Consent of the parties to all the agreed terms
- Name and signature of the witnesses
Difference Between Relinquishment Deed And Release Deed
Here is a table that sums up the difference between relinquishment deed and release deed:
| Point of Difference | Relinquishment deed | Release deed |
| Parties to the deed | In a relinquishment deed, The parties to the deed are co-owner who acquire the title to the property from an inheritance, and thus, they may be relatives. | In a release deed, The parties to the deed are usually a property owner and the banker |
| Consideration | There may involve a review. However, the relinquishment deed may be executed in the absence of consideration between family members | Consideration is a must in a release deed, which flows from the banker to the property owner in the form of security of debt |
| Encumbrance | The property in this deed is usually free from any encumbrance | Property becomes free from encumbrance only on execution of the release deed |
| Registration | To create a valid legal deed, a relinquishment deed must be registered under The Registration Act, 1908. Since there is a transfer of rights between co-owners, | It is not compulsory to register a release deed. However, It is suggestive legal advice to get your release deed notarised |
| Liability of the parties involved. | The person giving up the property has the primary obligation to discharge. | It is the direct liability of the property to pay the dues first. In response, the banker will release the property in favour of the owner |
| Purpose | The primary purpose is to give up a right in the property in turn of the other co-owner | The primary purpose of a release deed is to free the property from any charge created earlier in favour of the bank to secure the loan |
| Rights and Duties | It is the duty of the person. Giving up his right to give up his right in property and has the right to receive the agreed consideration or without it. The person who is acquiring the right in property has the duty to acquire the right and has the right to pay the consideration or not as agreed. | It is the duty of the owner to pay all the dues and has the right to receive the title to the property. The banker has the duty to accept the dues and has the right to transfer the title in favour of the owner. |
Conclusion
Alright, we have been through the individual meanings of the relinquishment deed and the release deed and understand the various terms that form part of these deeds, along with the steps to register the deed. Finally, we concluded with a different table that differentiated the two words. I hope you have enjoyed it so far.
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FAQ
What is the purpose of a relinquishment deed?
A relinquishment deed is a legal document used to transfer a co-owner's share of property to another co-owner. It is commonly used when a co-owner wishes to give up their rights to the property
The main purpose of a relinquishment deed is to eliminate a claim previously made on an asset. It helps in the documentation of release from a mandatory agreement.
If you wish to learn more about topics such as:
- What is release deed? What is release deed of property?
- Release deed among family members
- Release deed vs relinquishment deed
- Difference between release deed and relinquishment deed
Reach out to the experts at Vakilsearch right away!
What is the difference between relinquishment deed and gift deed?
A relinquishment deed is used to transfer property among co-owners, while a gift deed is used to transfer property to anyone, not just co-owners. Additionally, a gift deed is different from a relinquishment deed on several grounds, while some similarities also exist.
Is relinquishment deed enough to sell property?
A relinquishment deed is not enough to sell property. It only allows for the transfer of the relinquishing party's share to another co-owner. To sell the entire property, all co-owners must be in agreement and sign a sale deed.
What is the validity of release deed?
The validity of a release deed is established once it is properly executed and registered. It is a legally binding document that allows for the transfer of ownership from one co-owner to another.
Is release deed a transfer of property?
Yes, a release deed is a transfer of property from one co-owner to another. It allows for the relinquishment of rights, title, and interest in the property by one party in favor of the other co-owners.
What is the value of stamp paper for relinquishment deed?
The value of the stamp paper for a relinquishment deed is typically Rs 100. The content of the deed should be drafted on a stamp paper of Rs 100, and the language of the draft must be clear to all parties concerned.
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