Relinquishment Deed registration: Everything you need to know

 Relinquishment Deed Introduction

If a person dies intestate (without leaving a will or testamentary will), their property will be inherited by their legal heir. After that, it is up to the heirs to decide what to do with the property. If the heirs come to the conclusion of separation of property, any co-owner (who does not wish to keep the property) can renounce his share and transfer it to the other. Property is relinquished when one owner approves the transfer to another.


A Relinquishment Deed's Essential Elements

  • An heir may transfer or release his legal right to the inherited property through a relinquishment deed.

  • Transfers of rights have the effect of releasing one co-owner's share and enlarging the shares of the other co-owners.

  • When there is more than one owner of the property, a release or relinquishment deed is irrevocable.

  • When property is relinquished to a third party, the individual acquiring the property must be a co-owner. Otherwise, the relinquishment will be treated as a gift.

  • There must be a written document called a relinquishment deed signed by all parties and witnessed by two witnesses to relinquish a right to immovable property.

  • The release of rights in the immovable property must be registered under Section 17 of the Registration Act, 1908. Registration of a property takes place in the office of the subregistrar whose jurisdiction it falls within.

  • In a relinquishment deed, consideration can be given or not.

  • It does not cost much to make and register a relinquishment deed in a few days.

Relinquishment of property by who?

It is only possible for someone who owns a share of a property to relinquish it. The essentials of a valid contract must be followed in order for a relinquishment to be valid, other than compensation, if there are more than one owner in a property.

Gift Deed vs. Relinquishment Deed

Relinquishment Deed

Gift Deed

1. A relinquishment deed transfers one's legal right to property by releasing it.

2. Relinquished properties are always inherited.

3. Co-ownership of the property must be held by the person relinquishing it.

4. Compensation may be required or not for relinquishment.

1. A gift deed transfers the legal rights to the property to another person

2. There is no requirement that the property gifted be inherited.


3. Anyone can receive the property in their favour.

4. Compensation is not required for gifts

Relinquishment deed registration

Under Section 17 of the Registration Act, 1908, a relinquishment deed, which gives up a claim formally to another, must be systematically executed and registered. 

It is advised to consult a lawyer to draft a relinquishment deed for you in order to get it registered, but if you are familiar with legal methodology and terminology, you may do it yourself. For a relinquishment deed to be registered, the following steps need to be followed:

  • Relinquishment Deed Preparation: It is necessary to prepare a relinquishment deed on a stamp paper of Rs.100. The deed must include every detail of the relinquished property.

  • Subregistrar of Assurances to be presented with the deed: Upon preparing the deed on stamp paper, it is submitted to the subregistrar of assurances in the state where the property is located for registration, along with a registration fee, which varies from state to state but is usually between Rs. 100 and Rs. 250.

  • Witnesses and other formality:  To register a deed, you will need the signatures of two witnesses, as well as proof of identity (driver's license, Adhar card, etc.).

Can a document be registered at a person's home?

There is a provision in Section 31 of the Act that allows the Registering Officer to attend at the residence of any person desiring to present a Relinquishment Deed for registration, if special cause is shown (for example if the person is physically handicapped). If the Registering Officer is satisfied that the particular cause shown is sufficient, such a deed can be registered.


Comments

Popular posts from this blog

What You Need to Know About Term Sheet?

Deed of Relinquishment

Negotiating a Term Sheet - Important Tips