Do you want to register a Relinquishment Deed to transfer the share of your inherited property to your legal co-heir? Read this article to know the details.
When a person dies without transferring his property, the property is inherited by his legal heirs. But when any of the legal heirs want to give up their rights to the inherited property, the relinquishment deed comes into the picture. You need to register a withdrawal agreement when you acquire a property through the right of inheritance. The Withdraw Agreement is a legal document formatting which can give up the rights to his inherited property.
Elements Valid Relinquishment Deed
A valid Relinquishment deed contains the following element. These have been mentioned below:
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Registration
To get a valid Relinquishment deed, you will have to register it, and it has been made compulsory to register the deed under Section 17 of the Registration Act, 1908
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Requirement of Signature
The parties who have desired to relinquish their property should sign the Relinquishment deed in the presence of at least two witnesses
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Cannot be Revoked
The Relinquishment deed is irrevocable. Even if no consideration has been paid, no changes can be made to the deed
Ways to Register a Relinquishment Deed
You can register it by taking the following steps:
- The first step is to draft the content on a stamped paper worth Rs 100. Put all the correct details. Write in simple and easy language, so the intention of the Relinquishment deed registration is easily understandable
- After writing the details, go to the office of the sub-register and accompany at least two witnesses. All the required documents will also have to be taken to the register’s office
- A required fee has to be paid to continue the registration process.
- The Withdraw Agreement will be ready within one week, provided the deed fulfills all the required considerations to become a valid Withdraw Agreement
- According to Section 31 of the Registration Act, 1908, if the person is physically impaired or has any other difficulty and cannot visit the Sub-register’s office, he will be attended to by a person from the register’s office who will help him present the Withdraw Agreement for the registration.
Conditions to be Fulfilled
The following conditions are required to be fulfilled to get a valid Relinquishment Deed
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Description
The first paragraph of the deed should include the word ‘Withdraw Agreement’ along with the date of the creation of the deed
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Executant
There should be a person who executes the Withdraw Agreement The deed has to be executed after submitting it to the Sub-Register office
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Details of the Property
The Withdraw Agreement should contain every detail of the property, the share of which has been desired to relinquish. The property’s complete address must be mentioned apart from mentioning registration details. The details of the last owner also have to mention on the deed
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The Purpose
The purpose of the Withdraw Agreement has to be mentioned in the deed. If the sole last owner dies intestate, there will be no complication in creating the Withdraw Agreement
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The Details of Heirs
The details of all the property heirs must be mentioned on the withdraw agreement. The name, age, address and relationship with the deceased owner must be mentioned clearly
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Details of Share
The details of the share that has been proposed to relinquish should be mentioned on the deed. The proportion of shares held by each heir also has to be mentioned
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Relinquishment Clause
In this clause, the reason for the relinquishment of the share has to be mentioned. Whether the relinquishment is done because of natural love or for any other reason has to be mentioned clearly. The deed also has to accompany a declaration that only the release will be entitled to unlimited ownership of the relinquished share
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It Should be in the Expressed Form
A Withdraw Agreement should be in the expressed form and a written document registered and signed by all parties
Characteristics of Deed of Relinquishment
The characteristics of the Relinquishment Deed have been mentioned below:
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A Legal Document
The Relinquishment Deed is a legal document, and it will have validity if executed only by following the proper procedures required by law.
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No Consideration
It is not required to pay consideration for acquiring the right of relinquished property by other legal heirs.
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A Contract
It is a contract between the parties having the same right on the same property.
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No Involvement of a Third Party
Relinquishment deed for property cannot be given away to a third person who is not the co-owner. When the person relinquishes his share to a third person, it will be presumed to be a gift. The Withdraw Agreement cannot be executed in favour of a person other than the legal heir.
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More than One Heir
A Withdraw Agreement can be executed only when there is more than one legal heir.
Benefits of a Withdraw Agreement
There are many benefits of executing a Withdraw Agreement for which people prefer to execute it. Some of the benefits are:
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Smooth Transfer of Property
By executing a Withdraw Agreement, you can transfer your share of the property without difficulty.
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Transfer Gets Secured
You can transfer the property with the help of a Withdraw Agreement without the will.
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Additional Heirs
The Withdraw Agreement allows the heirs to transfer the property to the additional heirs.
When Can a Deed of Relinquishment be Revoked?
The Withdraw Agreement can be revoked based on the following grounds:
- When the co-owner is being cheated upon
- If the co-owner has been influenced to agree to relinquish the share
- In case of any misinterpretation found on the Withdraw Agreement.
To know more about How to Register Relinquishment Deed?
Conclusion
Due to being an easy and quick process, a Withdraw Agreement can be created without much effort. It should always be remembered that the person in whose favor the Withdraw Agreement has been executed should be the legal heir of that property. If the person is not a legal heir, then the transfer of the share of the property to such person shall be considered a gift in India. The Withdraw Agreement cannot be revoked, and once it is executed, it becomes final. But to become a valid Withdraw Agreement, it should contain all the essential elements and fulfill all the considerations mentioned above.
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