Please call our toll free customer helpline 1800 102 1003 if you have any queries or face any issue on our website. We regret any inconvenience caused.


Fullerton India Home Finance Co. Ltd. is now SMFG India Home Finance Co. Ltd.

Thank you!
Our representative will contact you shortly
Error occurred while submitting data. Please try again after some time.
Fill in the details below

We will call you back as soon as possible

Deeds of Release - Overview, How It Works, Uses, Types

Feb 20, 2024
Deeds of Release - Overview, How It Works, Uses, Types

A deed of release is an important document in property transactions that releases legal claims on a property. It is used to transfer property rights from one party to another under the Transfer of Property Act. Understanding what a Deed of Release means and its implications is crucial if you relinquish ownership interests. This article discusses the meaning, the features, the types, and the risks associated with deeds of release.

What is a Release Deed?

A release deed, classified as a legal document, is pivotal in seamlessly transferring property rights. This instrument is employed when an individual, known as the releasor, opts to surrender their rights to a specific property in favor of another party, referred to as the releasee. This legal mechanism is essential in scenarios involving shared property interests among multiple parties.

Release deeds find extensive use in family and inheritance matters, where a family member may relinquish their share without monetary exchange, typically in favor of another family member. A release deed differs from a sale deed because it usually emphasizes that no money is involved in the transfer. It helps to make transferring property rights clear and simple.

How does a deed of release work?

In real estate scenarios, when paying off your mortgage earlier, typically within a timeframe shorter than the original agreement, you must request a payoff amount to determine the exact outstanding debt for prepayments. Upon completing this crucial step, a formal deed of release is issued. It is advisable to keep this deed in your long-term records for future reference. The significance of a deed of release lies in its ability to eliminate any uncertainties regarding property ownership. In case of a communication breakdown, retaining a deed of release is essential, as it ensures your property is free from liens, provides clear and indisputable proof of ownership, and safeguards your property rights.

Risks of signing a deed of release

A deed of release serves as a conclusive document to terminate disputes or agreements between parties, preventing legal proceedings after the settlement. However, this deed resolves disputes but can also limit your legal rights. It is crucial to comprehend the rights you are giving up upon signing. In the event of a dispute, such as a debt disagreement, a deed of release may prevent future claims against the other party. So, seeking legal advice before signing a deed of release is highly advisable to fully understand and assess the potential implications, ensuring informed decisions that align with your legal interests.

Features of a deed of release

A deed of release is a mutual agreement between two parties facilitating the release of specific obligations. In this legal document, both parties agree to liberate each other from responsibilities like

  • Demands,
  • Debts,
  • Future claims.

Beyond mortgage scenarios, these deeds find application in diverse situations, such as resolving commercial disputes, terminating employment contracts, and ending personal guarantees.

Serving as a crucial tool in legal proceedings, a deed of release formally concludes matters, signifying the settlement of disputes and rendering past claims null and void. The comprehensive nature of these deeds ensures a clear and conclusive resolution.

Must Read:- Partition Deed - Format & Stamp Duty & Registration Process

Types of Release Deeds

In this section, we'll discuss various forms of release deeds commonly used in legal transactions. These may include but are not limited to, full release deeds, partial release deeds, conditional release deeds, release deeds without consideration, etc. Each of these documents serves a specific purpose, and it is essential to clearly understand their differences before entering into any legal agreement.

Full Release Deed

In a full release deed, when a party, known as the releasor, decides to relinquish all their rights and interests in a property, it serves as a comprehensive tool for transferring ownership. This type finds common application in scenarios like family settlements or relinquishing inheritance rights. Once executed, the legal implication is clear—the releasor has no remaining rights or claims over the property, ensuring a complete transfer of ownership stake.

Partial Release Deed

A partial release deed serves a distinct purpose where only a portion of the releasor's rights or interests in a property is transferred to the releasee. This type is beneficial in scenarios where a co-owner intends to relinquish a part of their share in the property, possibly to another co-owner or a third party. The legal implication of this deed is that the releasor retains some rights or interests in the property even after the execution of the deed, ensuring a partial transfer of ownership stake.

Conditional Release Deed

A conditional release deed operates with a purpose tied to specific conditions that must be met to release property rights. In this type, the application is notably seen in business transactions where the release of rights is intricately linked to performance criteria or other specified conditions. The legal implication of a conditional release deed is clear—it becomes fully effective and enforceable only upon successfully fulfilling the stipulated conditions.

Release Deed Among Family Members

A release deed among family members is a legal document designed to transfer property within a family, often without any financial exchange. This type of deed is commonly used to distribute property among heirs or as part of estate planning. It carries significant importance in familial contexts. However, it is important to note that it has specific legal and tax treatment, especially regarding stamp duty and registration charges. Understanding the complexities of this deed is crucial when engaging in familial property transfers to ensure compliance with legal and financial regulations.

Release Deed in Blood Relation

A release deed in blood relations operates similarly to a family member release deed but is specifically tailored for property transfers among direct blood relatives, like parents to children. This type of deed might carry different legal requirements and benefits, especially regarding reduced stamp duty in some jurisdictions. If you're considering property transfers among blood relatives, understanding the intricacies of a release deed in a blood relationship becomes crucial to ensuring compliance with legal requirements and potentially availing of reduced stamp duty benefits.

Release Deed Without Consideration

A release deed without consideration transfers property rights without financial compensation to the releasor. This type is commonly observed in altruistic transfers, such as gifting property to a family member or a charitable trust. Despite the absence of monetary consideration, it's crucial to note that the deed still needs to be legally executed and registered. If you're contemplating a property transfer without financial exchange, understanding the legal requirements of a release deed without consideration is essential to ensuring a valid and legally binding transaction.

Must Read:- What is a Mortgage Deed? - Meaning, Types & Key Elements

The Implications of a Release Deed

This section will dive into the legal aspects of a release deed, including the transfer of rights, tax implications, release deed format, and other relevant details. This section will provide a comprehensive understanding of the legal implications of a release deed to help you make informed decisions.

Transfer of Rights

A release deed can have a significant impact on property ownership as it directly transfers property rights. The decision of the releasor to either completely relinquish or partially transfer ownership can result in either the full transfer of ownership or the release of some stake in the property. This legal document is a powerful tool that can transfer property rights from one party to another and should be approached with careful consideration and guidance.

Tax Implications

When it comes to release deeds, it's important to keep in mind the significant tax implications that may arise, particularly concerning property appreciation. Even if the deed is executed without any financial compensation, the releasor may still be liable for capital gains tax. In addition, there are other costs to consider, such as stamp duty and registration fees, which vary depending on the state and value of the property. All of these factors should be considered when dealing with release deeds.

Legal Binding

Once a release deed is executed, stamped, and registered, it becomes a legally binding document. Any disputes arising from it can be contested in court, but proving its invalidity can be difficult. Therefore, it is essential to ensure that the document is clear and accurately details the parties' intent, the property, and the rights being released. This will help avoid any legal conflicts that may arise in the future.

Release Deed in Blood Relation

When it comes to property transfers within families, the release deed is often the preferred legal instrument, especially in cases involving blood relations. Notably, this option leads to reduced stamp duty in many Indian states, making it a cost-effective choice. Compared to standard transfers, the process is simplified, reflecting the family's trust and close relationships.

Release Deed Among Family Members

A release deed is a crucial document in estate planning and property succession, commonly used by wider family members. It serves as a tool for distributing property among heirs harmoniously and provides legal recognition to prevent disputes. Such deeds help safeguard the interests of all parties involved.

Release Deed Sample Format

When creating a release deed, it is crucial to follow a standard format to ensure its legal validity and effectiveness. Below is an outline of what the format typically includes:

1. Details of the Parties: The first step is to provide the names, addresses, and identification details of both parties involved in the transaction - the releasor (the party relinquishing rights) and the releasee (the party receiving rights).

2. Property Description: A comprehensive property description should include its location, size, boundaries, and other characteristics. This section ensures clarity about the property under consideration.

3. Terms and Conditions: The specific terms and conditions associated with the release of the property should be clearly stated. This ensures that both parties are on the same page regarding the terms of the release.

4. Signatures and Witnesses: The release deed should be concluded with the legal signatures of both parties. If necessary, the signatures of witnesses to the transaction can be included, adding an extra layer of authenticity.

Following this standardized format helps create a legally sound release deed, providing clarity and legal validity to the property transfer process.

Must Read:- Declaration Deed Purpose, Importance, And Other Things You Should Know


A deed of release is a crucial legal document in property transactions that serves to transfer property rights and release claims. Understanding its types and implications is essential, especially in cases involving family settlements, inheritance matters, or business transactions. Although it can resolve disputes, it also poses risks, so it is important to seek legal advice before signing.

While release deeds can help you transfer property, a home loan can make buying a property easier. SMFG Grihashakti offers affordable home loans up to INR 1 crore*, up to 90% of the property value, at competitive interest rates and flexible repayment terms. Apply for our home loan and begin your journey to owning your dream home today!


Is it necessary to register a release deed?

As per Section 17 of the Registration Act of 1908, it is obligatory to register a release deed. The registration of a release deed ensures that it holds legal validity and can be used as evidence in case of any disputes in the future.

Who pays the stamp duty on the deed of release?

When a deed of release is executed, the individual whose name appears on the document must pay the associated stamp duty. This means that the person releasing their claim or interest in a property must cover the stamp duty on the instrument.

Can a release deed be reversed after registration?

Once a release deed is registered, it cannot be reversed or canceled. This legal document is a binding agreement between parties that relinquishes one party's claim or interest over a property to another party. Therefore, it is crucial to carefully review and understand the terms and conditions before signing and registering a release deed.

What is the purpose of the release deed?

A release deed serves the crucial purpose of legally surrendering rights or claims to property. It acts as a vital instrument to transfer property rights from one party to another, ensuring transparency and resolving any disputes or agreements that may arise.

What is an example of a release deed?

An example of a release deed is when a family member relinquishes their share in a property to another relative without monetary consideration. This legal document ensures a smooth transfer of property rights and is often used in family settlements or inheritance scenarios.

What is the other name of the release deed?

A release deed is also referred to as a relinquishment deed. This document holds significant value in the eyes of the law and is considered a valid and legitimate means of transferring property ownership.

Can a release deed be challenged?

It is important to note that even though a release deed is a legally binding document, it can be contested or challenged within the first three years of its registration under certain extraordinary circumstances.

What is the limitation period for release deeds?

Under the Limitation Act, any relinquishment deed that has been granted can be revoked within a period of three years from the date on which the right was initially granted. It is important to note that this three-year period begins from the date on which the deed was executed and registered.

What is the difference between release deed and settlement deed?

A release deed and a settlement deed are two different legal documents. A release deed transfers property rights from one co-owner to another, while a settlement deed outlines an agreement between disputing parties to settle a dispute.

Who can execute a release deed?

All releasors are required to execute the deed. For a release deed to be binding, all releasors must sign it. If there's a concern that some may not sign, specify that non-execution by any party won't affect its operation against those who do sign.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

All rights reserved © - SMFG Grihashakti

Follow us LinkedIn facebook Instagram instagram Youtube