Relinquishment deeds are legal documents or instruments that allow one person to relinquish or give up their rights as an heir to an ancestral property to another lawful heir or co-owner. This article will inform about the registration fees for relinquishment deed and more.
Overview
A relinquishment deed may be created if one inheriting heir wishes to transfer his rights to another inheriting heir. A relinquishment deed would be made and recorded to allow the co-owners to formally surrender their portion of the property to the other co-owner. Hindu joint property co-owners can give up their claim to this immovable asset by giving up their ownership. When a property owner passes away intestate—without leaving a will—and the legal heirs of the property desire to transfer their ownership interest to any of the other co-owners, the need for a release deed often arises. Let us obtain details about registration fees for relinquishment deeds and more.
When to Create a Relinquishment Deed?
Understanding when to create a Relinquishment Deed is pivotal, and here are five scenarios where its utilisation proves indispensable.
Death – Clarifying Inheritance Without a Will
In the aftermath of an interstate death, where an individual passes away without a Will, the need for a Relinquishment Deed arises. This legal document facilitates the smooth transfer of property ownership. It becomes a tool to delineate the shares among legal heirs, clarifying who owns which part of the property and establishing responsibilities like property maintenance.
Divorce – Streamlining Property Division
During divorce proceedings, one spouse may choose to relinquish their share in the property to the other as part of the settlement. A Relinquishment Deed becomes the instrument for this transfer, ensuring a clear and documented transition of property rights and facilitating the equitable distribution of assets between the divorcing parties.
Urgent Need of Funds – Liquidating Property Shares
In times of financial urgency, a co-owner might opt to liquidate their share of the property to raise immediate funds. A Relinquishment Deed serves as the formal documentation for this transaction, safeguarding the interests of all involved parties and providing a transparent record of the share transfer.
Minor Legal Heir – Secure Transition with Court Approval
When the legal guardian of a minor legal heir intends to relinquish the minor’s estate for the benefit of another legal heir, a Relinquishment Deed is necessary. This process involves obtaining court approval to ensure the minor’s interests are protected. The deed acts as a legal instrument to effectuate the transition while maintaining compliance with legal requirements.
Goodness of Heart – Voluntary Property Share Relinquishment
Sometimes, driven by goodwill and a desire to strengthen relationships, a legal heir or co-owner may voluntarily choose to relinquish their share in the property to another co-owner. This act of generosity requires the execution of a Relinquishment Deed, providing a formal and legally recognised channel for the share transfer.
Benefits of a Relinquishment Deed
Here are six compelling advantages that highlight the significance of opting for a Relinquishment Deed:
Simplifies the Transfer of Property
The hallmark benefit of a Relinquishment Deed lies in its ability to simplify the transfer of property within families. By eliminating the need for a sale deed, this legal document streamlines the process, making property transitions between family members a seamless affair.
Avoids Legal Disputes
Relinquishing property rights through a dedicated deed helps avert legal disputes that often arise over ownership and inheritance. By clearly outlining the transfer of rights, family members can preemptively address potential conflicts, fostering a harmonious transition.
Smooth Succession Planning
In the realm of succession planning, a Relinquishment Deed plays a pivotal role. It becomes a strategic instrument ensuring the smooth transfer of property from one generation to the next. This forward-thinking approach safeguards familial assets and facilitates an organised succession process.
Faster Processing
Time sensitivity often dictates property transactions. A Relinquishment Deed stands out for its efficiency, offering faster processing times. This proves particularly beneficial in scenarios where an urgent need arises to transfer property ownership, allowing for swift and responsive actions.
Legal Protection
One of the paramount advantages of a Relinquishment Deed is the legal protection it provides. By establishing a clear record of the transfer of ownership, this document safeguards the interests of all involved parties, ensuring a legally recognised and documented transition.
Cost-effective
In contrast to protracted legal processes, a Relinquishment Deed is a cost-effective method for transferring property rights. Its efficiency not only saves time but also reduces the financial burden associated with lengthy legal proceedings, making it an accessible option for property transitions.
Critical Elements of a Relinquishment Deed
- A relinquishment deed may be created and executed for a mobile or immovable property with or without compensation
- Written and registered Deed of Relinquishment are required
- It can only be carried out by the legal heir of the Joint Hindu Family; it cannot be carried out in the legal heir’s favour
- The deed cannot be changed and may only be revoked if the decision was taken fraudulently, under duress, and without the subject’s free consent
- Only co-owners of a property are permitted to give up their ownership stake. Only in the interest of another co-owner may a co-owner give up their ownership interest in the property.
How to Register a Relinquishment Deed
- Obtaining an e-stamp paper from the closest Stock Holding Corporation of India Centre Ltd. (SHCIL) or its Authorized Collection Center is the first step in registering a relinquishment deed. On the SHCIL website, www.shcilestamp.com, the location of the closest Center is listed with its address. Additionally available for download from the website mentioned above is the e-stamp paper
- Once the e-stamp has been downloaded, a visitation appointment must be scheduled for the Sub-office. Registrar’s Appointments can be arranged via the Revenue Department’s website, http://revenue.delhi.gov.in, or by going in person to the registrar’s sub-office
- Bring your appointment confirmation with you on the day of the appointment, go to the sub-office and registrar’s and get your swipe card at the front desk to access the facilitation centre
- When it’s your time, hand the document to the facilitator and heed any corrections or comments he makes
- The parties to the deed must appear before the Sub-Registrar after seeing the Facilitator
- Following the sub-acceptance Registrar’s of the papers, parties must visit the biometric division for fingerprinting and photography
- The parties can now accept their receipt as the registration procedure is complete.
What Would Happen if One Party Couldn’t Go to the Registrar’s Sub-Office?
A request can be made at the sub-office registrar’s to send an official to the applicant’s residence to finish the registration if the applicant cannot travel to the sub-office registrar’s due to a terminal illness or any other handicap. The registration officer is permitted under Section 31 of the Registration Act to attend the location of such a celebration.
Is It Just For a Relinquishment Document to Be Recorded?
According to Section 17 (1) b of the Registration Act of 1908, any document creating or transferring an absolute property right must be registered. As a result, a deed of relinquishment must be registered to be legally binding. An unregistered document that must be registered per Section 17 is not allowed to be used as evidence in court, according to Section 49 of the Registration Act.
What Are Delhi Registration Fees for Relinquishment Deed?
In the event of a relinquishment document, stamp duty is 6 per cent for males and 4 per cent for women. The Collector of Stamps/SDM should be used to pay the stamp duty.
The registration fees for Relinquishment Deed’s is 1% of the total deed value plus Rs. 100 in pasting fees.
Stamp Duty Is Paid by Who?
When a relinquishment deed is involved, the executant, or the person who transfers his interest and ownership rights to the co-owner of the property, is responsible for paying the stamp duty.
What Are Registration Fees for Relinquishment Deed Sales and Conveyances?
At least 6% of the population lives in rural regions, and 8% in urban areas. Three per cent live in rural regions, whereas 5 per cent live in cities.
What Is the Maharashtra Stamp Duty for a Relinquishment Deed?
The stamp duty in this situation would be 6 per cent, which is made up of 5 per cent stamp duty and 1 per cent metro cess if the apartment were transferred into your and your mother’s names and you wanted to file a release deed.
Can a Relinquishment Deed Be Cancelled or Contested?
A recorded deed of relinquishment cannot be changed, and the parties participating in this transaction cannot back out of it in case of a later change of heart or opinion.
Revocation of a Deed of Relinquishment: Grounds
A co-owner who has surrendered his ownership interest in the property may revoke a release deed for the following reasons:
- If a scam was carried out to deceive him
- If he agreed under duress or was persuaded to do so
- If the finished document incorrectly interprets his intent.
However, because all parties participating in the agreement’s signing must cooperate in the cancellation procedure, the aggrieved party will need to go to civil court if the beneficiary refuses to agree to the cancellation.
What Is the Period for Revoking the Deed?
The Limitation Act requires that a relinquishment deed be revoked within three years of granting the privilege.
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Frequently Asked Questions
What is a Relinquishment Deed, and how does it differ from other property-related documents?
A Relinquishment Deed is a legal document used to transfer one's rights in a property to another co-owner. It differs from other property documents, like sale deeds, as it involves voluntarily surrendering rights without a monetary exchange, often within familial contexts, simplifying property transfers.
Who typically uses a Relinquishment Deed, and what are the common scenarios in which it is employed?
A Relinquishment Deed is typically used by co-owners of a property, especially in familial settings. Common scenarios include succession planning, divorces, urgent need of funds, or goodwill gestures where one co-owner voluntarily surrenders their share to anotheR family member.
What rights does a person relinquishing their share in a property transfer to other co-owners through the Relinquishment Deed?
Through a Relinquishment Deed, a person surrenders their ownership rights to the property. This includes rights to possession, use, and any responsibilities associated with the property. The deed specifies the extent and nature of the rights being relinquished.
Is a Relinquishment Deed applicable only to ancestral or inherited properties, or can it be used for any type of property?
While commonly associated with ancestral or inherited properties, a Relinquishment Deed can be used for any type of property. Its flexibility makes it applicable to commercial, residential, or other property types, provided co-owners agree to the transfer of rights.
How is the process of drafting and executing a Relinquishment Deed initiated, and what documents are required?
The process involves drafting the deed with the assistance of a legal professional. Signatories need to provide identity proofs, property documents, and details about the relinquishment. The document is then executed in the presence of a notary or witnesses.
Can a Relinquishment Deed be used to transfer rights to a specific portion or percentage of the property, and how is this determined?
Yes, a Relinquishment Deed can specify the portion or percentage of rights being transferred. The determination often involves mutual agreement among co-owners and may be based on property valuation, ownership percentages, or other factors.
What are the legal implications and obligations for both the relinquishing party and the recipient after the execution of a Relinquishment Deed?
The relinquishing party forfeits all rights to the property, while the recipient assumes full ownership. Both parties are legally bound by the terms of the deed, and any violation may result in legal consequences. It's crucial to adhere to the stipulations outlined in the document.
Does the Relinquishment Deed need to be registered, and what is the significance of registration in legal terms?
Yes, a Relinquishment Deed must be registered to be legally valid. Registration provides a public record of the transfer, ensuring its authenticity. Failure to register may render the deed unenforceable in a court of law.
How does the Relinquishment Deed impact the overall title and ownership status of the property involved?
The Relinquishment Deed significantly impacts the property's title and ownership status. It legally transfers the relinquishing party's rights to the recipient, altering the property's ownership structure and title accordingly.
In case of disputes or disagreements related to a Relinquishment Deed, what legal remedies are available to the parties involved?
Disputes related to a Relinquishment Deed may be resolved through legal remedies such as mediation, arbitration, or litigation. The legal process will assess the validity of the deed, interpret its terms, and determine the rights and obligations of the involved parties.
