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

Features & Benefits of a Relinquishment Deed

Some features and benefits of a relinquishment deed include the following:

• Simple property transfer without a sale deed
• An effective way to avoid legal disputes over a property inheritance and ownership
• Smooth succession planning between generations
• Fast and efficient ownership transfer
• A clear transfer record offering judicial protection to all parties
• Secure transfer in the case of interstate death without a will

Key Components of a Relinquishment Deed in India

Key components of a relinquishment deed in India include the following:

• Co-ownership details
• Details of the releasor and release
• Property details, including all movable and immovable articles on the location
• Statement of purpose
• List of heirs 
• Each party’s share in the property 
• Relinquishment details 
• Signatures of all parties and witnesses 

Also Read: Mortgage Deed: Meaning, Types, Importance, & Key Elements

Relinquishment Deed Format

The deed of relinquishment format is standardised and typically includes information about the releasor, releasee, property particulars, relationship, witnesses, etc. 

Documents Required for Relinquishment Deed

These documents are necessary for signing a relinquishment deed:

• Legal documents of the property
• Intention of relinquishment
• Co-owners details
• Deed particulars
• Name, address, and age of both parties
• Property description
• Consideration details 
• Aadhaar Card, PAN Card, and ID Proofs of the parties
• Any other documents or agreements related to the property

Also Read: Conveyance Deed vs Sale Deed: Meaning, Types, Requirements

Registration Procedure of Relinquishment Deed in India

Here is a stepwise procedure for the registration of the relinquishment deed:

• Drafting the deed on a stamp paper of Rs 100 mentioning the property and party details 
• Visiting the sub-registrar’s office with your originals, photocopies, passport-size photos, and address proofs
• Paying a nominal fee from Rs 100 and Rs 250 for registration 
• After validating the documents, the sub-registrar creates a registered deed within a week
• Visiting the office for collecting the deed

When to Create a Relinquishment Deed?

Property owners can transfer their rights through various legal instruments, such as sole, gifting, or will. A relinquishment deed is necessary only for an inherited property. These include ancestral properties that give legal rights to the heirs under the Hind Succession Law. 

Several instances when a relinquishment deed is necessary include death, divorce, or minor legal heir. If a property co-owner needs urgent funds and wants to borrow a loan against property, the other participants may liquidate their property share through relinquishment. It is also necessary when a co-owner or heir wants to relinquish their property rights out of goodwill.

Also Read: Understanding Immovable Property: Types, Rights, and Differences

Who Can Create a Relinquishment Deed?

Only the legal heirs of an asset or property can create a relinquishment deed to give up their share. It transfers an inherited property’s constitutional rights to another heir, promoting transparency and fairness.

In the event of divorce, a spouse may transfer their property share to the other spouse to settle the case. A property co-owner requiring urgent funds can also relinquish their property share to liquidate their stake. The legal guardian of a minor heir can relinquish their estate on behalf of the minor after getting the court's permission. A co-owner wishing to borrow a mortgage loan on the property may ask other participants to relinquish their rights.

Also Read: Equitable Mortgage vs. Registered Mortgage: Know the Difference

Can a Relinquishment Deed Be Revoked or Reversed?

Although a relinquishment deed is irrevocable, it can be revoked under the following circumstances:

• Misinterpretation
• Influence
• Coercion
• Fraud

However, all parties must agree to the revocation, or it will require a legal recourse in the court.

Conclusion

Creating and understanding the meaning of the relinquishment deed is essential for people navigating the ownership intricacies of joint Hindu properties. Whether an heir or co-owner wants to relinquish their legal rights over a property for financial need, legal obligation, or familial responsibility, a property format of relinquishment deed ensures a transparent and smooth property transfer. 

If you seek a mortgage loan against a property, the co-owners must relinquish their rights to make it lien-free and avoid debt obligation. You can submit a mortgage loan application at Hero FinCorp to obtain the best loan at the lowest interest rates and extended repayment tenures.

Also Read: Movable Property: Meaning, It's Types and Legal Rights

Frequently Asked Questions

1. What happens after a relinquishment deed?

After the registration of the relinquishment deed, the donor can no longer claim the property or any profits or gains from it.

2. Which is better: a relinquishment deed or a gift deed?

A gift deed is irrevocable. However, it can be legally challenged on the grounds of coercion or fraud. A relinquishment deed is also irreversible, even in the instance of non-consideration. So, a relinquishment deed is better to avoid any future claims.

3. What is relinquishment in property law?

Relinquishment means transferring a property’s ownership from one individual to another, commonly used when a legal heir or co-owner wants to transfer their property share to another legal heir or co-owner.

4. Is relinquishment transfer of property taxable?

In a relinquishment transfer, the initially paid amount is treated as the cost of acquisition and is taxable under capital gains.

5. Is the relinquishment deed enough to sell a property?

A relinquishment deed is not enough for a property sale. It only transfers the relinquishing party’s portion to another owner. To sell the property, all co-owners must sign a sale deed.