Understanding the Relinquishment Deed: A Comprehensive Guide
Table of Contents
Introduction to Relinquishment Deed
A relinquishment deed is essential in real estate, especially joint properties in India. It is a formal document that assigns ownership rights to another individual.
This deed is frequently used by co-owners of real estate or legal heirs to release their inherited portion of the property. A letter of relinquishment is a legal document that completes a property transfer from one person to another.
Characteristics of a Rights and Shares Relinquishment Deed
One co-owner gives the other co-owners their shares, interests, rights, and tiles by a relinquishment deed. For example, suppose a family’s surviving parent passes away and leaves the house to her son and daughter.
In that case, the son may give up his claim to the property to his sister in exchange for a particular amount of money. Alternatively, he could forfeit a specific amount or percentage of his ownership stake in the property.
Voluntary Transfer
A transfer must be voluntary for it to be deemed lawful. Any compulsion or force invalidates the deed. Thus, in the scenario mentioned above, the brother should voluntarily cede to his sister his ownership stake in the property.
Joint or Co-ownership
Only rights or shares in co-owned or joint properties may be transferred by executing relinquishment deeds. Because they are joint inheritors of the property in our scenario, the brother and sister can only give up their claim to it to one another.
Transfer of Liabilities
Upon execution of a relinquishment deed, the relinquished party transfers all of his obligations, including debts and legal and financial duties associated with the property. This may entail making upkeep, mortgage payments, and property tax payments.
Legality
A standard relinquishment deed format is legally binding because it is filled out on Rs. 100 stamp paper and registered at the sub-registrar’s office in front of witnesses. A small stamp tax, i.e. stamp duty on the relinquishment deed, is required to register the document.
Revocation or cancellation
If the relinquisher was compelled to give up his rights, a relinquishment document may be contested even though it is lawful.
A relinquishment deed can be contested within three years of the transfer date. In certain situations, each party’s approval of the deed should be obtained to cancel the deed.
In summary, a relinquishment deed is a legally binding instrument that allows one co-owner or co-inheritor to freely transfer their portion of jointly owned or inherited property to another. It differs significantly from a gift deed handed to anyone without thought.
Documents Needed to Complete the Relinquishment Deed
The following paperwork is required to sign a relinquishment deed:
- Property’s legal records
- Details of co-owners
- Details of the deed
- Name, residence, and age of each individual
- Description of the property
- Details of consideration
- The parties’ Aadhaar cards, PAN cards, and identity proofs
- Are there any more agreements or papers about the property
The Relinquishment Deed Registration Process in India
The process for registering the relinquishment deed is as follows:
- Drafting the deed on a stamp paper of Rs 100 referring to the property and party information
- Bringing your original documents, photocopies, passport-size pictures, and address verification to the sub-registrar’s office
- Registering for a small cost between Rs. 100 and Rs. 250
- Within a week of the paperwork being validated, the sub-registrar produces a recorded deed.
- Going to the office to pick up the deed
When Is a Relinquishment Deed Needed?
Property owners may assign their rights by bequest, gift, or solemn agreement, among other legal mechanisms.
Only when the property is inherited does a relinquishment deed become required. This includes ancestral possessions that grant the heirs legal rights under the Hindu Succession Law.
A relinquishment deed may be required in several situations, such as a minor legal heir, divorce, or death.
If one co-owner of the property requires immediate cash and wishes to take out a loan secured by the property, the other owners may liquidate their portion of the property by surrender.
A surrender deed is also required when a co-owner or heir wants to give up their property rights voluntarily.
FAQ’s
- Does stamp duty apply to relinquishment deeds?
Stamp duty on relinquishment deeds is 4% for women and 6% for men.
- What effect does a deed of relinquishment have?
A legal document known as a letter of relinquishment is used by one legal heir to give up their legal claims to the parental property to another, such as their mother, sister, brother, daughter, or son.
- How long does a relinquishment deed last?
There is a three-year window from the transfer date for any party to contest the deed.
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