All you need to know about Relinquishment Deed

relinquishment deed, nrihelpinfo

Relinquishment deed is a legal document where under a legal heir gives up or releases his legal rights in an inherited, parental or joint property in favour of other legal heirs such as his mother, father, son, daughter, brother or sister etc. The term ‘Relinquishment’ refers to the abandoning and surrender of the rights, title and interest, by one co-owner of property in favour of the other co-owners. The consequence of Relinquishment of co-owners share in a property is the enlargement of the shares of the other co-owners.

Important elements of Relinquishment Deed

Legal document: It is a legal document. With this document, a legal heir can release or transfer his shares of the inherited property and land. It is recommended that a professional lawyer should be hired to get precise advice on your matter.

Consequences: The effects of such transfer of rights are the release of the portion of one co-owner and the increase in the shares of the other co-owners.

Irrevocable: A relinquishment or release deed is irrevocable even if it made without any consideration. For a valid relinquishment, the estate must be owned by more than one person.

Relinquishment cannot be prepared in favour of a 3rd person: Relinquishment of land and property can’t be made in favour of an individual other than a co-owner. If a deed is made in favour of an individual who is not a co-owner, the transaction will be treated as a gift.

Must be in writing: The relinquishment of share in the matter of immovable property needs to be done only through a written document named relinquishment deed which must be signed by all the individuals and by at least two witnesses.

Must be registered: Relinquishment deed falls under Section 17 of the Registration Act, 1908 and therefore, a relinquishment of right in the immovable property need to be registered. The registration of relinquishment deed takes place in the office of the sub-registrar within whose jurisdiction the property is located.

Consideration: A relinquishment deed can be prepared with or without any consideration.

Easy process: A relinquishment deed can be performed and registered in few days, and this process is not expensive.

The cost to Relinquish property to a co-owner in India

The cost associated with such cases would depend on:

  • The fee your lawyer charges for preparing the property relinquishment deed
  • Stamp duty applicable in the area where the property is located.

Concerning stamp duty in India, please be aware that the value is determined by market values set by the government as applicable as per the published circle rates etc. Even though no money is being received to relinquish share in a property, the fair market valuation of the share being relinquished will be used to calculate stamp duty.

Points to remember on Relinquishment of Property in India

1.Relinquishment of property can be done between co-owners of the same property.

2.Relinquishment of property in India can be prepared for consideration and without consideration.

3.If there are several co-owners of a property and a person wishes to relinquish his/her share in favour one particular co-owner. Then this is not considered to be valid and may be considered as a sale/gift/conveyance of the co-owners share.

Kindly consult best law firm or hire a property management lawyer when drafting legal agreements of any sort.

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All you need to know about Relinquishment Deed

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