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.

Dismiss

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

What is a Relinquishment Deed? – Meaning, Format, Documents, Benefits and Procedure

Feb 02, 2024
What is a Relinquishment Deed? – Meaning, Format, Documents, Benefits and Procedure

In India, a property can have many owners. Usually, when someone dies without a will, his heirs inherit his property. If any number of heirs decide to give up their share of property, they can do so by giving it to co-owners. This transfer is called relinquishment of property. In this article, we will discuss the Relinquishment Deed in detail.

H2: What is a Relinquishment Deed?

If you are planning to transfer ownership of a property, it is crucial to know about a relinquishment deed. It is a legal document that permits an individual to transfer their share of a property to another person. This deed is often used when a co-owner or legal heir intends to give up their ownership. To make it legally enforceable, the signer (the one who is relinquishing their share), two witnesses, and the appropriate authority must register the document. In this way, a relinquishment deed acts as a binding contract between the parties involved in property transfer.

Points to remember when drafting a relinquishment deed

To successfully draft a relinquishment deed, you must understand the process fully, starting with the important points to remember. Here are key pointers to guide you through the drafting process:

  • Co-Ownership Focus: There’s a limit to which the relinquishment can be done by only the co-owners of the property, emphasizing their exclusive right to give up shares.
  • Intra-Co-Owner Transfer: The relinquished claim can be directed solely to another co-owner of the specific property.
  • Ancestral Property Scope: The deed's execution is restricted to ancestral inherited properties, maintaining clarity on the property's origin.
  • Immovable Property Requirement: There should be mandatory compliance with Section 2(6) of the Indian Registration Act, 1908, specifying that the property must be immovable.
  • Mandatory Registration: You must adhere to legal requirements by registering the deed under Section 17 of the Indian Registration Act, 1908, ensuring its validity and enforceability.

Relinquishment Deed Format

Relinquishment deeds need to be structured in a specific way to be considered legally valid. Typically, the deed begins with important information such as the date of execution and the details of the releasor and releasee. The deed then explains the relationship and status of the deceased, along with details on their affiliation with the National Pension System. The legal heirs are also outlined, with their names, ages, relationships, and addresses clearly stated. This organized approach is crucial for a smooth and legally sound transfer of rights.

Objectives Relinquishment Deed

When opting for a relinquishment deed, the primary aims are straightforward yet pivotal. This legal document serves as a means to seamlessly transfer property ownership between parties, ensuring a legally binding and transparent process.

The purpose of a deed is to prevent disagreements over who owns a property. It helps ensure that the transfer of ownership is agreed upon by everyone involved. Establishing a clear property title is essential because it provides legal evidence in case of any disputes. This evidence can be used to prove property ownership without any confusion.

Must Read:- What is a Conveyance Deed - Meaning, Importance & Types

Benefits of a Relinquishment Deed

It is important to note that a relinquishment deed, while it may appear to be a mandatory legal requirement, offers numerous additional benefits beyond mere compliance. One of its primary advantages is that it can help minimize any potential disputes that may arise among family members regarding a particular property. This is just one of the many reasons why executing a relinquishment deed can be highly beneficial for all parties involved. Other advantages of this legal document include:

1. Simplifies the Transfer of Property

Property transfers within families can be simplified by choosing a relinquishment deed since it eliminates the need for a sale deed, streamlining the process and ensuring a hassle-free transition.

2. Avoids Legal Disputes

Opting for a relinquishment deed can help prevent potential disputes over ownership and inheritance that could otherwise create tension and conflict within the family. By giving up your property rights, you effectively surrender your claim to the asset, allowing it to be managed and distributed according to a predetermined plan.

3. Smooth Succession Planning

Incorporating a relinquishment deed into your succession plan can be a crucial step toward a hassle-free property transfer to the next generation. Doing so can ensure that your family's hard-earned legacy is protected and preserved for the future.

4. Faster Processing

A relinquishment deed is a legal document that is crucial in facilitating prompt property transfers. It is particularly useful in urgent situations where time is of the essence. This document proves invaluable in ensuring smooth and hassle-free property transactions.

5. Legal Protection

By choosing a relinquishment deed, all parties involved can have peace of mind, knowing they have a strong legal record that provides comprehensive protection. This documentation ensures that the ownership transfer is legitimate and reduces the risk of legal issues.

6. Cost-effective

Transferring property rights can be done quickly and at a low cost with a relinquishment deed. This method avoids lengthy legal procedures, making the transfer process simple and budget-friendly.

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

Can the Deed of Relinquishment be Revoked?

If you've relinquished your property share through a relinquishment deed but find grounds for revocation, certain circumstances permit it. However, all parties involved should cooperate during the cancellation. The said grounds are:

  • Misinterpretation: If your intentions were misunderstood in the deed.
  • Influence or Force: If someone coerced or influenced you to sign against your will.
  • Fraudulent Acts: In cases of deceit or fraudulent activities.

If a beneficiary refuses to cancel the deal, legal recourse through the court is an option to pursue.

Documents Required for Relinquishment Deed

To process a relinquishment deed, ensure you have the following documents ready:

  • Legal and registered documents of the property.
  • A written statement expressing the intention to relinquish.
  • Details of all co-owners.
  • Particulars required for a Release Deed.
  • Names, ages, and addresses of the releasor and releasee.
  • Description of the property.
  • Identity proofs such as Aadhar Card, Driver's License, or Passport.
  • PAN cards of both parties.
  • Presence of two witnesses during the execution.

Make sure you have collected all of them before processing a relinquishment deed.

How to Register a Relinquishment deed?

When it comes to transferring the ownership of a property through a relinquishment deed, several important steps must be followed to ensure a proper and legally binding transfer of property rights. By taking a methodical approach, you can ensure that the process is transparent and that all parties involved know their rights and responsibilities throughout the registration process. In this section, we will explore the various steps involved in registering a relinquishment deed so that you can confidently navigate this complex process and achieve a successful outcome.

Step 1: Prepare the Deed

To initiate the process of transferring property ownership, it is essential to first draft a relinquishment deed. This legal document should contain all the necessary details related to the transfer and must be written on INR 100 stamp paper. It's crucial to be precise and accurate while drafting the deed to avoid any errors or discrepancies that may create complications in the future.

Step 2: Visit the Sub-Registrar's Office (SRO)

To ensure a fair and transparent resolution, it is recommended to bring all parties involved in the matter to the appropriate dispute resolution organization (SRO). Having two witnesses present during the proceedings is important; they must provide their identification proof for verification purposes.

Step 3: Registration Fee

During the registration process, it is required to pay a fee within the range of INR 100 to INR 250 at the SRO. The fee is nominal and must be paid to complete the registration process successfully.

Step 4: Document Scrutiny

The officials in charge of the SRO (Securities and Exchange Commission) will carefully examine the document submitted to them with great attention to detail. They will conduct a thorough analysis to ensure the document is authentic, accurate, and error-free. Every single aspect of the document will be reviewed and cross-checked to guarantee its authenticity and correctness.

Step 5: Collect Registered Deed

Upon completion of all necessary formalities and approvals by the concerned authorities, the relinquishment deed will be processed and registered within a week.

Must Read:- What is a Sale Deed and its Importance in Home Loans

Conclusion

Understanding the complexities of a relinquishment deed to ensure a seamless transfer of property rights is crucial. This document guarantees a transparent and legally binding process, simplifying family property transfers. Adhering to the specific format, objectives, and benefits allows individuals to navigate the process clearly and confidently. While you navigate the relinquishment deed process, explore SMFG Grihashakti’s home loans for your homeownership journey. Enjoy up to INR 1 crore* in loan amounts and benefit from competitive interest rates, flexible tenures of up to 30 years*, and a hassle-free application process. Apply now!

FAQs

Differentiate between a release and relinquishment deed.

When co-owners of an inherited property decide to give up their shares, they need to create a legal document that facilitates the transfer of property rights. This document is commonly referred to as either a release or a relinquishment deed. Although the terms are interchangeable, they both signify the same concept.

Is it possible to revoke a relinquishment deed?

In certain situations, such as misinterpretation, fraud, or when the deed was executed under duress, a relinquishment deed can be revoked. This means that if any of these factors are present, the person who signed the deed can legally request to have it nullified.

What are the grounds on which a person can revoke a relinquishment deed?

Some possible grounds to revoke a relinquishment deed include if there was a misinterpretation of intentions, if influence or force was used during signing, or if fraudulent acts were involved, then the deed can be revoked. However, the cooperation of all involved parties is essential, and legal recourse is an option if one party denies the revocation.

What's the time limit for revoking a relinquishment deed?

The time limit for revoking a relinquishment deed is three years from the date when the right is conferred. Within this period, the signer has the option to cancel or revoke the deed if circumstances warrant it.

What are the particulars of the witnesses required for a relinquishment deed?

For a relinquishment deed, witnesses play a crucial role. Two witnesses are required during the execution of the deed, and they must provide their identification details for verification purposes their names, addresses, and signatures. Their presence and authentication enhance the validity of the relinquishment process.

In which kind of property a relinquishment deed can be possibly done?

A relinquishment deed can be executed specifically for inherited properties. It allows co-owners of inherited real estate to voluntarily give up their share, ensuring a legal and transparent transfer within the family.

Who can relinquish their share in a property?

Relinquishment of property shares can only be executed by co-owners. This legal process enables co-owners to voluntarily give up their share in the property, facilitating a smooth and consensual transfer within the family or among legal heirs.

Is it mandatory to register a relinquishment deed?

Yes, it is mandatory to register a relinquishment deed. Registration ensures the legal validity and enforceability of the deed. This process involves submitting the document to the relevant authority, verifying its authenticity, and officially recording it to make the transfer of property rights legally binding.

When to Create a Relinquishment Deed?

If someone dies without a will, a relinquishment deed can determine who owns the property. It can also help settle property matters during divorce, provide urgent financial assistance, and transfer property to minors. Creating a relinquishment deed is important in these situations.

Who Can Create a Relinquishment Deed?

Relinquishment deeds can only be created by those entitled to inherit the property. This ensures that individuals with legal rights to an inherited property can transfer those rights to another heir, ensuring fairness and transparency in the process.


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
IRDAI COR No: CA0492

All rights reserved © - SMFG Grihashakti

Follow us LinkedIn facebook Instagram instagram Youtube