Written by – Jaya pathak
A relinquishment deed is a legal document by which account owner gives up their share in an immovable property to another co-owner. It’s commonly used in family or inheritance situations to avoid disputes and simplify the items. According to the legal experts, a relinquishment deeds allows co-owner to transfer their share to another co-owners and states that one co- owner is giving up their ownership to the other co-owner. The relinquishment deed shows that the releasing party has given up all the rights and claims of property for transfer.
Legal framework for relinquishment deeds
It comes from the transfer of property act, 1882 and the registration act of 1988. Under the transfer of property act, any document which transfers an interest in immovable property must satisfy the requirement of this act. Section 5 of this act defines transfer of property as conveying ownership by any act of parties. Or relinquishment date is therefore governed by the rules of this act. The relinquishment must be made voluntarily and in writing.
Step-by-Step Guide to Drafting a Relinquishment Deed
Below is a structured process for preparing a valid relinquishment deed, from identifying parties to registering the deed:
- Parties to the Deed: Clearly identify the Releasor (who is relinquishing his/her share) and the Releasee (who is receiving the share). Include full names, parentage (e.g. “son/daughter of…”), ages, and addresses of both. These parties should be competent adults (of sound mind and capable of contracting). Only a co-owner or legal heir can execute the deed, and the property interest must pass to another co-owner/heir (not a stranger).
- Property Description: Provide a clear and complete description of the immovable property. This typically includes the survey number, boundaries, area, location (village, city, district), and any registration details of the original title deed. Often the description is given in a “Schedule of Property” section of the deed. It’s important the description is unambiguous so there is no doubt which property/share is being relinquished. Many guides stress that the deed must “outline the details of the property… and the share being relinquished” to avoid future disputes.
- Relinquishment Details: State the nature of the transfer. This section should spell out:
- The exact share being relinquished (for example, “the Releasor’s undivided ½ share in the property”).
- The voluntary nature of relinquishment (“the Releasor is releasing all rights without any coercion or undue influence”).
- Any consideration: if the relinquishment is gratuitous (no money, done out of love/affection), state that explicitly. If there is compensation or nominal consideration, mention the amount and terms. For example: “The Releasor did not receive any consideration for this relinquishment” or “In consideration of [Rs. X/for natural love and affection]…”. Clarity on consideration (even if none) is important. In published formats, one common clause reads:
“The Releasor did not receive any consideration from the Releasee herein and has released and relinquished his undivided ___ right in the property….”. - An explicit declaration that the Releasor now has no further claim: e.g. “the Releasor does not have any right, title or interest in the property henceforth” This ensures there’s no ambiguity about extinguishing the relinquished rights.
- Covenants and Execution: Include clauses that protect the Releasee’s title. For instance, the Releasor often covenants to do all necessary acts to perfect the title of the Releasee (such as signing any further documents if needed). The deed should also state that it’s executed voluntarily. Emphasize that the document is on the appropriate stamp paper (per stamp duty laws) and is signed by the Releasor in the presence of two witnesses.
Even though only the releasor’s share is being transferred, many formats have both parties sign for completeness. The deed must be signed by at least two witnesses, whose names, addresses, and signatures appear in the execution clause. - Stamp Duty: Before registration, affix the correct stamp duty. Stamp duty on relinquishment deeds varies by state and circumstances (relationship of parties, property value). For example, many states levy around 5–6% of the property’s value (plus cess) as duty. In Delhi, the duty is 6% for men and 4% for women (including a 1% cess). In Maharashtra, it’s generally 6% (e.g. 5% plus 1% metro cess).
Additionally, registration charges (fees) are often about 1% of property value plus nominal fees. The Releasor (person surrendering the share) is typically responsible for paying the stamp duty. Be sure to purchase or print the deed on e-stamp paper or non-judicial stamp paper of the correct value as per your state’s Stamp Act. - Registration: Take the executed deed to the local Sub-Registrar’s office where the property is situated. Both parties (Releasor and Releasee) should appear with valid ID and address proofs, the original title deed, and any other required documents. Present the deed to the registrar. The registrar will verify the identities of the parties and witnesses, check the stamp and contents, and then register the document. Registration is mandatory.
An unregistered relinquishment deed has no legal effect against third parties. After registration and payment of the fee, the deed is entered in the official register and the parties receive copies. - Post-Registration: Once registered, the deed is a legally binding record of the transfer. The relinquished share is now vested in the Releasee. As one guide notes, a duly registered relinquishment deed “is considered legally binding. The relinquishing party no longer has any rights or claims over the property”. The Transferor’s name on the property records is effectively removed for that share, and the transferee’s interest is clarified.
Throughout this process, it is advisable to seek legal advice. A lawyer can help draft unambiguous clauses, verify the title, compute stamp duty, and guide the parties through registration. Proper legal guidance helps safeguard everyone’s interests and prevents future challenges. It will provide clarity and enforceability.
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