Both relinquishment deeds and release deeds may appear to be the same however they have a subtle difference. Get to know the subtle but significant differences in this blog and how it affects the process.
For many people, the concept of the ‘deed of release’ and ‘deed of relinquishment’ is not only puzzling but highly confusing. Most people assume that both deeds are the same. This is however not exactly accurate. Let’s see about Relinquishment Deed and Release Deed on this blog
Relinquishment Deed Meaning
Relinquishment deeds are legal documents that allow a person to give up his or her legal right to property to another person with their consent.
Deed of Release Meaning
A release deed, also known as a deed of reconveyance, is a legal document used to renounce one’s claims against a specific property. A release deed completely releases the parties from their previous obligations.
While there is no discernible difference between the two, the context in which the terms are used vary. However the essential purpose of the two Relinquishment Deed and Release Deed is the same.
Relinquishment Deeds
For instance, if a person dies without leaving a will and his property passes to his legal heirs (his two sons). Now, one of the sons, for personal reasons, transfers his rights to the property to his brother. The transfer of rights is referred to as a relinquishment deed online in this context. However, in the case of relinquishment, the person receiving the deed must be interested in acquiring the property.
In addition, that person must give full consent to take over the entire share of the property. Otherwise, the deed of relinquishment will become void and cannot be legally enforceable. Also, it must be noted that a 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.
When to Use a Release Deed
When it comes to a release deed, the deed can be enforced against anyone who previously had a vested interest in the property, regardless of whether they were coparceners or not. When a person applies for a loan from a bank, the bank takes complete control of the homebuyer’s previously owned property as collateral. When the loan is paid in full, the mortgage is returned to the owner along with a release deed. Through the mortgage release deed, the bank relinquishes temporary possession of the mortgage to its owner. As a result, in a mortgage release deed, the parties involved do not have to be relatives or coparceners.
Moreover know about relinquishment deed can only be used for inherited properties and not for the release of services. An employment release deed, for example, can be executed to release both the employer and the employee from previous obligations. Or, in some cases, to establish the terms of the employee’s severance package. The release deed can also be used to prevent an employee from disclosing certain highly confidential company information and/or from forming his own company using such confidential information.
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 on a ₹ 100 stamp paper. It should then be submitted before the sub-registrar within whose jurisdiction the property lies along with the registration fees. Executing this deed also requires the signature of two witnesses.
Requirements of a Release Deed
A release deed must also be registered in the same manner as prescribed above, such a deed doesn’t need to be notarized.
Scope For Revoking a Relinquishment Deed and Release Deed
In general, a registered deed cannot be revoked simply because the person transferring his or her claim to property has changed his or her mind.
A relinquishment can be challenged on the same grounds on which a general contract can be revoked. Fraud, undue influence, coercion, and misrepresentation are all possibilities. It is critical that both parties consent to the cancellation. Both parties mean the person who relinquishes and the person in whose favor the deed is relinquished. Otherwise, the only way to cancel the deed is to go to court.
However, on the other hand, a release deed, in general, cannot be revoked.
Registration of a Relinquishment Deed and Release Deed
Registering legal instruments is a very essential part of processing a deed. If you need any help with registering a Relinquishment Deed and Release Deed get in touch with the experts at Vakilsearch right away!
Conclusion
In a nutshell, a relinquishment deed is a type of release deed that can be used to renounce claims over inherited property to a co-owner(s) of the interstate’s property. Relinquishment deeds transfer a person’s legal rights to a property to someone else with their consent. In such cases, the two people must be related. A release or re conveyance deed renounces one’s claims against a specific property. In such cases, the two people do not have to be related.
Relinquishment Deed and Release Deed are both similar to a binary contract and they both require the same essentials to become a valid deed. But a relinquishment deed is formed between two parties with or without consideration. A release deed, on the other hand, requires consideration in order to be valid. Now talk to an expert at Vakilsearch and resolve all your doubts on these two agreements. In fact, we can also help in drafting the same in just three easy steps.
