Often many people need clarification when it comes to release deeds. A release deed, also known as a relinquishment deed, is an agreement that enables co-owners of a property to pass on their rights over that property to another co-owner. The need for this deed usually arises in the case of legal heirs in which one or more than one heir decides to transfer their property rights to another with or without consideration. The deed is drafted on a proper relinquishment deed format on which ownership of ancestral land or property is transferred. There are various steps and processes under which this deed is prepared. In this article, let’s dive deeper into the core to unravel its intricacies.
Relinquish deed- What does it mean?
In a joint Hindu property, when co-owners decide to give up their rights in any immovable property by relinquishing their ownership, then relinquish or release deeds come into existence. Usually, such cases arise when the actual owner of that property dies without drafting their will. In the absence of a will, legal rights in that property are typically equally distributed among their legal heirs. The new legal heirs are known as co-owners. If any one or more co- Owners of that property wish to transfer their ownership rights to another, they legally can do with the help of the release deed format. The transfer of ownership can be done with or without any consideration.
Objectives of such deeds
The primary objective is to take care of the respective property, which can be done only by someone who can be present and eager to care for that inherited property. Moreover, this deed binds all the co-owners to a legal obligation that everybody has to follow. A legally bound deed has a much more significant effect on future consequences and decisions. The essential objective served by this deed is it bridges the gap of the absence of will and legally leverage co-owner rights again in that property.
When and who creates it?
As per relevant sections under the registration act 1908, only the co-owners of inherited ancestral property can create this deed. Moreover, they can do this deed in favor of another co-owner only who is a legal heir of the previous owner. You can only initiate this deed in the absence of legal will and only after the death of the original owner of that property.
Is there any Process?
There is a specific process you have to go through to get this deed ready.
- First, you must pay Rs 100 for relinquishment deed stamp duty to obtain a stamp paper. On that paper, you have to put all the conditions and criteria fulfilling the needs of that deed. Moreover, you have to ensure that all the provided information is clear and to the point. A more transparent deed is easily executable.
- After properly drafting the deed, you have to go to the sub-registrar office of your area. You must take two witnesses along with other concerned parties in the deed to the office. It is prudent that you must ensure that every person carries their proof of identity along with their photographs and address proof.
- You will have to pay a nominal fee between Rs 100- Rs 300 for registering your relinquish deed in sub- registrar’s office.
- After proper scrutiny, if the officers are satisfied with the stamp duty on the relinquishment deed, conditions, eligibility, and transparency of your release deed, they will register your documents. After this, within a week, you can ensure that your release deed has been successfully recorded.
Can it be Revoked?
According to relevant sections of the registration act 1908, nobody has the right to revoke a relinquished deed unless and until,
- If anybody is coerced to draft such a deed
- If the deed has been done by fraud or undue influence
- If intentions and conditions in the document are not vague and precise.
- If any discrepancies exist in the deed.
You must know that you can only revoke within three years of executing that deed and not more than that. If any deed on which stamp duty on relinquishment deed has been paid between the stipulated time has been revoked, it has the probability of not getting canceled.
Is it Mandatory?
Though it is not mandatory to create a release deed, if it has been created by proper relinquishment deed format, it must be registered to provide it a legal validation. If it remains unregistered, it ceases the legal right to bind the co-owners in legal obligations and cannot be entertained in court.
A release deed is done by co-owners of an inherited property in the absence of a will. It is drafted in a proper release deed format which legally provides the co-owners their legal rights in that ancestral property. There is a certain process under which a release deed is created and registered. Any unregistered deed loses legal binding; hence, it cannot be presented in any court. You must know that a release deed is very different from a sale or gift deed on the grounds of consideration.