Is a relinquishment deed enough to sell property?

No. A relinquishment deed does not sell property. It transfers ownership of a share in a co-owned or inherited property to another co-owner or heir. It essentially allows you to give up your claim on the property. While this may simplify the sale process for the remaining owners, it does not constitute the actual sale itself.

What is the purpose of a relinquishment deed?

The main purpose is to transfer ownership of a share in a property. This can be useful in various situations, such as: Simplifying co-ownership: One co-owner can relinquish their share to another, consolidating ownership. Inheritance settlement: Heirs can relinquish their share to simplify inheritance distribution. Gift of property: A co-owner can relinquish their share as a gift to another.

What is the relinquishment of inherited property?

This is the specific process of using a relinquishment deed to give up your claim on inherited property to another heir. This can be done for various reasons, such as financial difficulties, lack of interest in the property, or to achieve a desired inheritance distribution.

What are the benefits of a relinquishment deed?

Simplifies ownership: It clarifies ownership and avoids future disputes. Faster property transactions: It can expedite the sale or transfer of property. Tax advantages: In certain situations, it can offer tax benefits Gifting flexibility: It allows for gifting property without a formal sale.

Can there be consideration in a relinquishment deed?

Generally, no. A relinquishment deed is typically a voluntary act without any financial exchange. However, there can be exceptions in specific situations, like relinquishing a share in exchange for a different property or taking care of the relinquisher's expenses. It's crucial to consult a legal professional to ensure the deed complies with applicable laws and regulations.

Does relinquishment deed attract stamp duty?

Yes, relinquishment deeds attract stamp duty in India. The stamp duty rate varies from state to state, but it is typically between 1% and 6% of the market value of the property.

Who needs to sign the Relinquishment Deed?

The relinquishment deed must be signed by the following people: The releasor, who is the person who is giving up their rights to the property. The releasee, who is the person who is receiving the property. In some cases, two witnesses may also be required to sign the deed.

Where to approach to cancel the deed?

If you need to cancel a relinquishment deed, you will need to approach the sub-registrar's office where the deed was registered. You will need to submit a cancellation application and pay the applicable fees.

Can Relinquishment Deed Be Mortgaged?

According to the bank, a mortgaged property cannot be abandoned; instead, the property must first be released with the consent of the appropriate authority before being remortgaged with a new owner. Nevertheless, this would result in significant additional costs for us in the form of stamp duty.

Is Unregistered Relinquishment Deed Valid?

According to Section 17 of the Registration Act of 1908, any instrument that transfers or extinguishes any right, title, or interest in real property must be registered in order to be legitimate, hence an unregistered relinquishment deed is not acceptable.

Is the Relinquishment Deed a legal document?

The Relinquishment Deed is a legal document that allows a legal heir to transfer or release his/her legal right of inherited property to another legal heir.

What are the consequences of a Relinquishment Deed?

The effects are the release of shares of one co-owner and the increase of shares for other co-owners.

Who can relinquish a property?

The relinquishment of property can only be done by someone who has a share in the property. In case there is more than one owner in a property, either of the co-owners can do relinquishment. For a valid relinquishment, the essentials of a valid contract are to be followed other than the compensation

What are the differences between Gift and Relinquishment Deed?

A Relinquishment Deed enables one person to release or transfer his/her legal right to the property. Whereas, a Gift Deed enables one person to gift his/her legal rights in a property to any person. In a relinquishment deed, the property relinquished is always an inherited property whereas the property gifted need not always be an inherited property. The person in whose favour the property is relinquished must be the co-owner of the property. whereas the person in whose favour the property is gifted can be anyone.

Which one is better among Gift and Relinquishment deed?

Despite the fact that a gift deed cannot be withdrawn, it can be contested in court on the grounds of fraud or compulsion. Even when there is no consideration, a relinquishment deed is final. On the grounds of fraud or coercion, it can only be contested in court.

Relinquishment Deed - Procedure, Documents Required and Benefits

Relinquishment Deed India - An Overview

A legal heir can give up their legal claim to inherited property in favour of other heirs by signing a relinquishment deed. When a person passes away without a will, the relinquishment document transfers title, and the legal heir (through inheritance) must renounce their shares in favour of another legal heir, or co-owner of the same property, if there are any. Transferring a deed of relinquishment requires either consideration or no consideration. However, the parties involved must be co-owners of the property for the transfer to qualify as a release or deed of relinquishment.

Benefits of a Relinquishment Deed

A relinquishment deed provides for seamless transfer of property when it is jointly owned.
A deed of relinquishment helps in the transfer of property, in the event of a death and no will has been written by the deceased individual (or intestate).
A relinquishment deed allows a legal heir to transfer ownership of his/her inherited property to other legal heirs.

Checklist for a Relinquishment Deed in India

Legal Document: It is considered to be a legally binding document, and hence used to relieve the legal rights of an heir from an inherited property relinquishment deed to another heir.

Registered Document: It must be registered under section 17 of the 1908 registration act, to be considered as a legally valid document.

A Written Document: It must be a written document signed by the parties involved, in the presence of two witnesses.

Co-owners: It can only be used to transfer rights to an inherited property relinquishment deed among co-owners, and not to a third party.

Objective of Relinquishment Deed

A Relinquishment Deed lets a person give up their rights to a property. It's like saying, 'I don't want my part of the property anymore.' You use this deed to tell other owners that you're giving up your share. It helps avoid any confusion or problems later.

How to Register a Relinquishment Deed?

The draft relinquishment deed would commence from when the required information is shared by the client. Once the information is shared, lawyers are assigned to the respective client and they stay in touch with him/her through mobile or email.

The charges paid by the client are inclusive of the following:

First draft in 3-4 working days.
Two iterations followed by the First Draft at the Client's convenience.

When to Create a Relinquishment Deed For Property?

You should make a property relinquishment deed when:

1. You want to give up your part of a property.

2. You want to make it clear to other owners you're not part of the property anymore.

3. You want to avoid any mix-ups or fights about the property in the future.

Timeline for the First Draft of Relinquishment Deed India

It takes approximately 3-4 working days to deliver the first draft of the relinquishment deed with consideration. However, it can also be delivered within 24 hours, on a priority basis, for which additional charges are applicable.

Time Limit for Revocation of Relinquishment Deed

The relinquishment deed is revocable within three years of its execution, but after this period, it becomes irrevocable.

How Can We Help In Drafting A Relinquishment Deed For Property

The deed of relinquishment is prepared by an assigned legal representative from Vakilsearch
The deed of relinquishment is registered under section 17 of the 1908 registration act, to make it legally valid.
A stamp paper is purchased and used for the relinquishment deed registration procedure
The Vakilsearch’s legal representative will coordinate with the Sub-Registrar’s office to secure a date for the registration process. The registration fee is also paid.
The parties involved in the relinquishment process arrives at the Sub-Registrar’s office to sign the deed of relinquishment, along with two witnesses.

Documents Required for Relinquishment Deed

Here are the main documents required for the relinquishment deed:

Legal Documents of the Property
Registered Documents
A Written Document Stating Intention
Co-owners Details
Particulars required for a Release Deed
Name of the Releasor, Age, Address
Name of the Releasee, Age, Address
Property description
Details on consideration, if any.
Aadhar Card, ID Proofs, like Driver License, Passport, etc
PAN card of both the parties for the execution of Deed of Relinquishment
You will require two witnesses at the time of execution of Relinquishment Deed
Other Agreements which you might have entered into concerning the property
Other materials may be needed according to state requirements.

Relinquishment Deed Format

A general relinquishment deed format is provided below. This is a general template and it might change as per the requirements of the parties involved.

RELINQUISHMENT DEED

This document, referred to as a relinquishment deed, is being created and enacted on the ____ day of _______ by ________________, who is the ___________ (relationship) of Late _________________ and _________________, as well as ____________, who is the ___________ (relationship) of Late ___________________. They both reside at _________________________________________________________, and will be referred to as the EXECUTANTS/RELEASORS.

The Releasee in this situation is ________________, who is the ___________ (relationship) of Late ___________________. Late ________________ was a subscriber to the National Pension System with PRAN ________________. However, Late ____________ passed away without creating a will or nominating a beneficiary to receive the accumulated pension wealth. As a result, the following individuals, who are legal heirs, are left behind:

Name
Age
Relationship
Address

NOW THIS DEED WITNESSETH AS UNDER:

The EXECUTANTS/RELEASORS are relinquishing their respective shares in the claim under the National Pension System as an act of natural love and affection, without any financial gain. They are transferring their shares to the Releasee, _________________, who is the ___________ (relationship) of Late ________________. The EXECUTANTS/RELEASORS affirm and declare that neither they nor their legal heirs have any right, claim or interest in the accumulated pension wealth of Late ________________, and it now belongs solely to the Releasee, __________(relationship) of Late ________________.

The following witnesses were present when the EXECUTANTS/RELEASORS and the RELEASEE executed this deed of relinquishment on the aforementioned date:

Witnesses	Witness 1	Witness 2
Name
Address
Signature

How To Register A Relinquishment Deed?

Following are the steps to register a Relinquishment deed:

Step 1: Draft the relinquishment deed on a sheet of paper with a stamp value of ₹ 100
Step 2: Visit the local sub-office registrar's (SRO) and make sure to involve all the parties involved
Step 3: At the moment of registration, two witnesses must also be present. They should provide the required ID proof
Step 4: The registration of the deed costs between ₹100 and ₹250
Step 5: The paper will be examined by officials. In a week, the registration will be created if the authorities are pleased
Step 6: Go to SRO and get the registered deed.

This process is much more simplified at Vakilsearch. All you have to do is get in touch with our experts. We will take care of all drafting and registering the relinquishment deed in 3 easy steps.

Why Vakilsearch?

Vakilsearch is one of the platforms which coordinate to fulfil all your legal requirements and connect you to the most efficient legal experts. We have over 50k+ companies who are our regular clients. Since our focus is on seamless and easy legal procedure, we are always growing with each passing day with your support.

The clients can always track the progress of any service they choose on our platform. If you have any questions about the Relinquishment Deed for the registration process, our experienced legal advisors are always available with our services. Vakilsearch also ensures that the procedure of relinquishment deed happens in no-time so that clients need not stay in the waiting phase. We also check the documents thoroughly before submitting them and let you know each step of the process.