What is a Release Deed?
Table of Contents
Introduction
A deal in any property can only be said to conclude with the legal papers for an amicable transfer, which is essential for clarity on ownership.
What is a Release Deed?
What is a Release Deed or Deed of Release?
A release deed is a legal document wherein a party’s rights, claims, or interest in real estate properties are surrendered.
It is established on a formal document wherein one party, known as the releasor, lets go of his right to an owner in any form or regard to a piece of property with another, known as the release.
This can happen in various ways, such as selling an estate, winding upf estates, and over disputed issues. The Deed of Release also serves as an instrument of discharge from a binding arrangement, rendering all previous rights to an asset inoperable.
For example, a Deed of Release is necessary when property ownership is to be transferred from a lender to the homeowner upon returning the mortgage against which the previous obligations have been created between the parties.
Nature of a Release Deed
The execution of a Release Deed is usually voluntary. The parties will be able to execute the instrument only upon agreement over the terms contained in the instrument.
Identification
The parties to the release, the property that is the subject matter of the release, and the character of the release must appear.
Consideration
While a Release Deed does not require consideration in most cases, it nonetheless does contain some consideration regarding the release of rights, which usually is money but at times other forms.
Notarization
It is often notarized to give it greater legal standing as one needs to establish that the Release Deed was executed in the presence of the legal authority.
Registration
It is usually recommended, if not sometimes required, by various jurisdictions that the Release Deed be registered with the local land registry for the release of rights to be considered perfected.
Deed of release format
The following are the details contained in a release deed:
- Title: This is a deed of release.
- Parties: Provide a full description of the relevant party releasing the rights and the release party receiving the rights.
- Property description: This involves the description of the property being released, including but not limited to location and survey number.
- Consideration: This is the amount, if any, paid by the buyer, which must be set out in the deed if there is one.
- Rights released: Description of the rights, interests, or claims to be released by the releasor
- Legal declarations: Declarations that the releasor is acting ‘of his/her own free and voluntary act,’ not due to any form of coercion or compulsion
Conclusion
A Release Deed is the most important legal document in property dealings, as it elaborates and contracts the parties involved with rights and responsibilities.
Understanding how a Release Deed works might save you much time, money, and courtroom hassle when buying a house, getting divorced, or dividing property.
It is always advisable that an attorney or some other legal professional be consulted before executing a Release Deed. They will take you through the process, which protects your interests and ensures the document is within the ambit of local law.
Understanding what a Release Deed means is one good way of building intelligence to prepare you in case there are sales of properties under these circumstances.
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FAQ’s
- Does a Deed of Release amount to proof of ownership?
Yes, it would mean you actually own your home when the mortgage is paid off and a deed of release is issued by the lender.
- Can a release deed be voided after being registered?
No, it is not possible to revoke a release deed once it has been registered.
