If you are wondering what the purpose of relinquishment deeds is and don't know why it's needed then here is everything you should know about it.
A relinquishment deed is a legal document in which one legal heir relinquishes or releases his legal rights in the inherited parental property to another legal successor, such as his mother, son, daughter, brother, sister, etc.
The term ‘relinquishment’ describes when one co-owner of property abandons and surrenders their rights, title, and interest to the other co-owners. The other co-owners shares will grow as a result of one co-owner giving up their stake in the property. In this article, we will discuss the main purpose of a relinquishment deed and why it is needed.
What is the Purpose of the Relinquishment Deed?
The main purpose of relinquishment deed is to eliminate a claim previously made on an asset. It helps in the documentation of release from a mandatory agreement.
The need for a release deed usually arises when a property owner passes away intestate (without leaving a will) and the legal heirs of the property decide to transfer their ownership interest in the relevant property to any of the co-owners.
Essentials Elements of Relinquishment Deed
- Legal document: A deed of relinquishment is an official record. The legal right of an heir to the inherited property may be transferred or released using this document
- Consequences: Such a transfer of rights results in the release of one co-share owner and the enlargement of the shares of the other co-owners
- Irrevocable: Even if it is made without any sort of thought, a release or relinquishment deed is final. There must be multiple owners of the property for relinquishment to be legal
- Relinquishment cannot be done in favour of a third person: Property cannot be relinquished in favour of someone who is not a co-owner. If a relinquishment is made in favour of a third party who is not a co-owner, it will be viewed as a gift
- Must be in writing: Only a written document known as a relinquishment deed.
which must be signed by all parties and signed by a minimum of two witnesses, may be used to relinquish rights in the case of immovable property
- Must be registered: A release of rights in the immovable property must be registered
it should be done because the relinquishment instrument is subject to Section 17 of the Registration Act, 1908. The office of the sub-registrar under whose authority the property is located is where the registration takes place
- Consideration: Relinquishment deeds may be executed for or without consideration
- Easy process: It takes only a few days to create and register a relinquishment document, and it is not expensive.
Who Can Relinquish Property?
A shareholder in the property is the only person who is able to give up their interest in it. If there are many owners of a property, either co-owner may relinquish ownership. Other than the payment, a lawful relinquishment must adhere to the requirements of a valid contract.
In Whose Name Can a Property Be Relinquished?
Only someone who is a co-owner of the property may renounce it in their name. Or, to put it another way, the property cannot be given up in the name of anyone other than the co-owner who is already a part of it. As a result, for a relinquishment to be legally binding, the recipient of the property must be a legitimate heir. Property can also be transferred to minors; such cases will be governed by the Indian Contract Act of 1872.
Validity of Relinquishment deed
Only the following situations will be regarded as valid for a deed of relinquishment.
- It is necessary for the individual giving up the property to have an interest in it
- Except for the father’s self-acquired property, the property must be joint family property in the Hindu religion.
Relinquishment deeds are irrevocable since they can only be revoked for the same reasons that a contract can be revoked.
Grounds for Revocation of Relinquishment Deed
How to challenge a relinquishment deed. The grounds for canceling a relinquishment deed are the same as those for canceling a contract (although there is no compensation or money involved in the deed).
And they are as follows:
- Fraud
- Misrepresentation
- Undue influence
- Coercion
Thus, the deed cannot be simply cancelled on any other grounds, according to your whims and preferences, but only when there is a lack of free consent. The person who surrendered his property and the party in whose favour it was surrendered both needs to agree to the cancellation. However, if the beneficiary individual refuses to revoke the deed, you can apply to the civil court for cancellation of the deed. According to the Limitation Act, the time restriction for challenging is three years.
Unregistered Relinquishment Deed
Relinquishment deeds that are not registered are not enforceable and cannot be challenged in court. Any transaction involving real estate is only valid if the deed is signed and properly registered by paying the registration fees and stamp duty. Any document that creates or removes a right in relation to any immovable property must be registered
Section 17 (1) b of the Registration Act, and Section 49 of the Act prohibit the admission of unregistered documents and deal with the documents that must be registered as per Section 17 of the Act.
How to Register a Relinquishment Deed?
The parties involved must follow this step-by-step procedure in order to register
- A draft of the relinquishment deed’s contents on a sheet of stamp paper costing ₹100. Make sure the text is error-free and that there are no grammatical or spelling mistakes. All parties involved must understand the nature of the thanks to the draft’s language, which must be very explicit
- All parties to the transaction, as well as two witnesses, should go to the sub-office registrar in the relevant area. Everyone is required to carry their passport-sized pictures as well as originals and copies of their identity and address proofs
- A nominal charge of between ₹100 and ₹250 must be paid for the registration of the relinquishment deed
- The document would be registered and a registered relinquishment deed would be created within a week if the official was pleased with the nature of the deed. The documents can then be picked up by going to the sub-office. registrar’s
Conclusion
With the information above, we hope that one has a better understanding of the purpose of relinquishment deeds and their use. In the event of a death and in the absence of a will, a relinquishment deed helps in the transfer of property. If you are someone who wants to draft a relinquishment deed but don’t want to get into all the nitty-gritties of the process, our experienced team at Vakilsearch can help you get it done in just a few clicks.
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