Relinquishment Deed: Guide to Meaning, Format, and Registration

When dealing with property ownership, the term “relinquishment deed” often comes up, especially in cases involving family property. Understanding what a relinquishment deed is, its format, and the registration process is crucial for anyone navigating property transfers. This comprehensive guide will delve into every aspect of a relinquishment deed, providing clarity on its meaning, format, registration process, and other important considerations.

Table of Contents

• Relinquishment Deed
• Situations Requiring a Relinquishment Deed
• Advantages of Using a Relinquishment Deed
• Limitations of a Relinquishment Deed
• Eligibility to Create a Relinquishment Deed
• Relinquishment Deed Registration Charges
• Importance of Registered Relinquishment Deed
• Time Frame for Executing a Relinquishment Deed
• Essential Documents for a Relinquishment Deed
• Necessity of Registering a Relinquishment Deed
• Relinquishment Deed Format
• Detailed Registration Process for a Relinquishment Deed
• What to Do If a Party Cannot Visit the Sub-Registrar’s Office?
• Comparing Relinquishment Deed and Gift Deed

Relinquishment Deed Meaning

A relinquishment deed is a legal document used to transfer ownership of property from one co-owner to another. It is often used among family members to transfer property rights without any monetary transaction. The primary focus is to relinquish or give up one’s share in the property, allowing the other co-owners to gain full ownership.

Situations Requiring a Relinquishment Deed

Several situations may necessitate the creation of a relinquishment deed:

1. Intestate Death: In the case of intestate death, a relinquishment deed can clarify property ownership among legal heirs.
2. Divorce Settlements: It may be required as part of a divorce settlement when one spouse wishes to relinquish their share to the other.
3. Urgent Financial Needs: Co-owners seeking to liquidate their share for immediate cash may use a relinquishment deed.
4. Minor Legal Heir: Legal guardians of minor heirs may use the deed to transfer property on behalf of the minor with court approval.
5. Voluntary Transfer: Individuals may choose to release their share as a gesture of goodwill to other co-owners.

Suggested read: Partition Deed

Advantages of Using a Relinquishment Deed

1. Clarifies Ownership: Clearly documents the transfer of property rights.
2. Ensures Legal Compliance: Provides a legally binding transfer recognized by authorities.
3. Simplifies Transfer: Facilitates easy transfer of property rights among family members.

Limitations of a Relinquishment Deed

1. Restricted Use: This can only be used among co-owners of a property, usually within a family, and cannot be used to transfer property to a third party.
2. Legal Complexity: Requires adherence to strict legal procedures and timelines to ensure validity.
3. Irrevocability: Once executed and registered, revoking a relinquishment deed can be complicated and often requires mutual consent.

Eligibility to Create a Relinquishment Deed

Any co-owner of a property can execute a relinquishment deed, provided it is done voluntarily and without coercion. All parties must be of legal age and sound mind.

Relinquishment Deed Registration Charges

The registration charges for a relinquishment deed can vary from city to city. For Delhi, the  registration fee for a relinquishment deed is Rs 1,000 per instrument plus a Rs 100 pasting fee. Further, the fees charged by professional property lawyers and advocates may vary depending on their service charges.

Suggested read: Lost Your Property Documents

Legal Precedent: Importance of Registered Relinquishment Deed

According to a Bombay High Court ruling, an unregistered relinquishment deed cannot be used as evidence in court, highlighting the necessity of proper registration. It is compulsory to register a relinquishment deed to make the transfer of property rights legally valid. This requirement is governed by Section 17 (1) b of the Registration Act, 1908. This act serves as a tool to validate the transfer of the right of immovable property to another co-owner, thereby legalizing the process of property transfer under the Transfer of Property Act.

Time Frame for Executing a Relinquishment Deed

Executing a relinquishment deed involves several key steps with specific timelines to ensure legal validity. After drafting the deed, the first step is to pay the applicable stamp duty based on state-specific laws, a crucial step for legal validation.
Once the stamp duty is paid, the deed must be executed, which involves signing by all parties in the presence of witnesses, typically completed within 5-7 business days.

Following the execution, the deed must be submitted for registration within four months of the execution date. If this timeline is not met, an additional four-month grace period is available, subject to a penalty that can be up to ten times the registration fee. The sub-registrar’s office will then take approximately 15 days to verify and process the registration.

Once the registration is complete, the registered deed can be collected from the sub-registrar’s office within 15 days. Overall, the entire process, from drafting to collecting the registered deed, takes about 1-2 months. Adhering to these timelines ensures the deed is legally valid and enforceable.

Essential Documents for a Relinquishment Deed

To execute a relinquishment deed, you generally need:

1. Original property documents
2. Government Id proof of all parties
3. No Objection Certificate (NOC) from other co-owners, if needed
4. Draft of the relinquishment deed
5. Proof of stamp duty payment
6. Revoking a Relinquishment Deed

Revocation of a relinquishment deed is possible but requires mutual consent from all parties involved. Understanding the legal implications and procedures is crucial. Further, the relinquishment deed can typically be revoked within three years from the date the rights were transferred. After this period, revocation becomes more challenging and may require legal intervention.

Necessity of Registering a Relinquishment Deed

Registration of a relinquishment deed is mandatory. As per the Transfer of Property Act, unregistered deeds are invalid and cannot be used as legal evidence.

Relinquishment Deed Format

A standard relinquishment deed includes:

1. Title
2. Property details
3. Names and details of the involved parties
4. Relinquishment statement
5. Signatures of all parties
6. Witness signatures
7. Stamp duty information

Detailed Registration Process for a Relinquishment Deed

1. Drafting the Deed: Engage a legal expert to prepare a draft of the relinquishment deed. This draft should include all necessary details, such as the names of the parties, property description, and the specific share being relinquished.
2. Payment of Stamp Duty: Calculate and pay the applicable stamp duty based on the property’s value and state regulations. The payment of stamp duty is a crucial step as it validates the legal aspect of the deed.
3. Execution of the Deed: Once the draft is ready and stamp duty is paid, all parties involved (relinquished and releasor) need to sign the deed in the presence of at least two witnesses. The witnesses should also sign the document to attest to its authenticity.
4. Visit to the Sub-Registrar’s Office: All parties involved must visit the office of the sub-registrar where the property is located. This visit is necessary for the registration of the relinquishment deed. Ensure that all parties bring the original documents, identification proofs, and the duly signed relinquishment deed.
5. Verification by Sub-Registrar: At the sub-registrar’s office, the officials will verify the identities of the parties and the authenticity of the documents. This step ensures that the transfer of rights is legitimate and voluntary.
6. Registration of the Deed: Upon successful verification, the sub-registrar will register the relinquishment deed. This involves entering the details of the deed into the official records and providing a registered copy to the parties involved.
7. Completion of Process: After the registration, the relinquishment deed becomes legally binding. The registered copy of the deed serves as proof of the transfer of property rights and can be used as evidence in court if required.

What to Do If a Party Cannot Visit the Sub-Registrar’s Office?

If any party involved in the relinquishment deed is unable to visit the sub-registrar’s office, they can provide a letter of relinquishment or Power of Attorney (PoA) to a trusted individual to act on their behalf. This PoA must be registered and authorized by the appropriate authorities to ensure its validity.

Comparing Relinquishment Deed and Gift Deed

While both relinquishment and gift deeds involve the transfer of property without monetary consideration, they differ significantly:

Relinquishment Deed	Gift Deed
Transfer property rights among co-owners, usually within a family	Transfer property to any individual
No monetary consideration	No monetary consideration
Does not require acceptance by the recipient	Requires acceptance by the recipient to be legally valid
Often used in cases of inheritance or family settlements	Can be used for transferring property to friends, relatives, or anyone
Can be revoked within a specific time frame, often with consent	Generally irrevocable once accepted by the recipient
Mandatory to register to be legally valid	Mandatory to register to be legally valid

 

FAQs about Relinquishment Deed