Many individuals put off writing a will for years, and occasionally they pass away without one. If there are more than two legal heirs, they can then request to split the property using a relinquishment deed, which enables a smooth property transfer. Read on to further understand about relinquishment deed.
Relinquishment is the action of giving up. Consequently, a relinquishment deed is a legal instrument created to give up one’s rights to the immovable property to another. A co-owner of parental property might transfer their portion to another heir through a relinquishment deed.
In plain English, this deed is created when one co-owner of such an inherited property transfers their interests, title, and rights to the other co-owners of the property. Relinquishment deeds are used between a property’s legal heirs instead of gift, transfer, and sale deeds. A release is not required to pay anything to get the releasor’s rights. Furthermore, this deed does not have legal force unless it is recorded. Let us obtain a detailed understanding of a relinquishment deed.
Essential Elements Possessed by a Relinquishment Deed
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Registration Of The Deed
By “Section 17 of the Registration Act, 1908,” relinquishment deeds must be registered at the relevant sub-registrar office.
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Signature Is Required
In the presence of two witnesses, all persons involved must sign the relinquishment deed with consideration.
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Relinquishment Cannot Be Made In The Interest Of A Third Party
Relinquishment cannot be made in the interest of anyone other than a co-owner. A relinquishment will be regarded as a gift if it is made in favour of someone who is not a co-owner.
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Must Be Presented In Writing
Regarding immovable property, relinquishing rights can only be accomplished in writing by a relinquishment deed that must be signed by all parties and witnessed by a minimum of two witnesses.
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Consequences And Irrevocability
The results of such a transfer of rights include the release of one co-share owner and the expansion of the interests of the other co-owners. Even if made without consideration, a relinquishment deed is irrevocable, and a legitimate relinquishment requires that at least two individuals own the property.
Who is Entitled to Relinquish Property and in Favour of Whom?
A person who owns a piece of the property is the only one who can surrender it. If a property has more than one owner, either co-owner may relinquish ownership. A legal relinquishment must adhere to all legal contract requirements, except payment.
Only those who jointly own or share the property’s equity are eligible to renounce it. Or, to put it another way, the property cannot be given up in the name of a party other than an existing co-owner. Therefore, for relinquishment to be effective, the recipient of the property must be a legitimate heir. It is also possible to transfer property to children; in this situation, the Indian Contract Act of 1872 will apply.
How is Relinquishment Deed Different From a Gift Deed?
Another option to give someone else ownership of an owner’s property is a gift deed. While there are some parallels between a gift deed and a relinquishment deed, there are also several differences.
- Beneficiary
Only a person who is the co-owner of the property may renounce it, and only in that person’s name. Regardless of whether the recipient is a legal heir to the property, an owner can relinquish his claim through a gift deed.
- Consideration
In a gift deed, the transferor forfeits his ownership interest in the property without accepting compensation. On the contrary, a relinquishment may well be made either for or without consideration.
- Registration and Stamping
Just like release deeds, gift deeds must be registered by The Transfer of Property Act. While both deeds must be reported legally binding, gift deed registration costs are higher than those for relinquishment deed registrations.
- Transfer to Minor
A person can give property to a minor, and the property could likewise be transferred to the benefit of a minor using a relinquishment deed. The Indian Contract Act, 1872, shall be applicable in certain circumstances.
Can a Relinquishment Deed Be Revoked or Reversed?
An irrevocable registered relinquishment document. The parties involved in this transaction cannot back out of it in case of a change of heart or opinion. A co-owner may revoke a relinquishment 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 process, the aggrieved party will need to go to civil court if the beneficiary refuses to agree to the cancellation. The Limitation Act requires that a relinquishment deed be revoked within three years of the date on which the respective right was granted.
Key Takeaways
When a property is jointly owned, a procedure to register a relinquishment deed is in charge of ensuring a seamless handover. In the event of a death, a relinquishment document aids in the transfer of property if the deceased person (or intestate) did not leave a will. A legal heir may give the title of the inherited property to his additional legal heirs with the aid of a relinquishment deed. A relinquishment deed should be systematically recorded and performed since it enables the co-owners to assign their ownership interests to any other co-owner of his parental property. A lawyer can be consulted to draught the deed correctly. However, those familiar with legal jargon and procedures can draught the act themselves.
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FAQs
Is the relinquishment deed considered to be a legal document?
A legal heir may release or transfer their entitlement to the inherited property to another legal heir by executing a relinquishment deed.
Is consideration an essential element in a relinquishment deed?
Either for money or without consideration, a relinquishment deed will be assigned. On the other hand, the transfer cannot be discharged or renounced unless the parties are co-owners of the property.
Does a relinquishment deed mandatorily need to be registered?
Yes, a relinquishment deed is required to be registered to make it legal.
Can you revoke a relinquishment deed?
No, a relinquishment deed is irrevocable.
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