Relinquishment Deed: Meaning, Documents, Objective, Format, Benefits & How to Register

What is a Relinquishment Deed?

In terms of real estate, a relinquishment deed plays a crucial role, especially regarding joint Hindu properties in India. It is a legal document that transfers ownership rights from one person to another. Property co-owners or legal heirs often use this deed when they wish to release their inherited property share. Simply put, a letter of relinquishment is a legal document that executes a property transfer from one person to another. Signing this document is a voluntary act when both the involved parties agree to the property transfer. The person relinquishing their property share must sign this deed and get it attested by two witnesses. Following that, the deed must be registered with the relevant authorities to give it a legal status.

Documents Required for Relinquishment Deed

Creating a relinquishment deed requires the following documents:

Registered and legal documents of the property in question
Details of all the property co-owners
A written document mentioning the intention of share relinquishment
Particulars of the deed
Details about the releasor and releasee, including their name, address, and age
Property description
Consideration details, if needed
Identity proofs, PAN cards, and Aadhaar cards of both parties
Any other agreements associated with the property
Any other documents that the authorities require

Objectives of Relinquishment Deed

The primary objective of creating a relinquishment deed is to transfer a property’s ownership from one individual to another in a transparent and legal manner. It is a common document among cases where a property’s legal heirs or co-owners want to relinquish their rights over the property to another legal heir or co-owner.

The document becomes registered after paying the relinquishment deed stamp duty, which avoids disputes over a property’s ownership while ensuring transfer with consent from all the parties involved. In case of a property transfer, the deed also establishes a clear title of the property and serves as evidence during legal disputes.

Benefits of a Relinquishment Deed

Now that the relinquishment deed meaning and objectives are clear, let’s tap into the multi-faceted benefits it provides:

Simplifies the Property Transfer: A relinquishment deed simplifies the procedure of property transfer from one legal heir or co-owner to another, eliminating the requirement of a sale deed.
Ensures a Smooth Property Succession: The deed ensures smooth and quick property succession from one generation to the next without any hassle.
Provides Legal Protection: The deed legally protects all the parties involved by establishing a clear record of the ownership transfer.
Prevents Legal Disputes: The registered deed prevents any legal disputes arising from property inheritance and ownership, as it documents the releasor relinquishing their rights over a property.
Saves Money: A letter of relinquishment is a cost-effective way of transferring a property to another heir or co-owner without going through lengthy and expensive legal procedures.
Quick Processing: The method of processing a relinquishment deed is quick, saving time when a property ownership transfer must occur for an urgent need.

Relinquishment Deed Format

A relinquishment deed has a standard format that typically includes information about the releasee, releasor, their relationship, and the property particulars. Usually, the parties execute the document out of love and affection. The objective is to ensure that the releasor affirms to release their property share and transfer it to the releasee. It also includes the details and signatures of two witnesses required to testify in the transaction.

How to Register a Relinquishment Deed?

After understanding what a relinquishment deed is, it's essential to learn how to register it once created. These are the steps involved:

The first step is to draft a deed on a stamp paper of Rs 100. It should mention all particulars, including the property details, information about the releasor and the release, a list of legal heirs, a statement of relinquishment, signatures, and a conclusion. Double-check the document to ensure it does not have any errors or discrepancies.
Once the document is ready, all the parties involved, with two witnesses, must visit the sub-registrar's office in their locality. Everyone should carry their original and photocopies of identity proofs, address proofs, and passport-sized photographs.
A nominal fee of Rs 100 to 250 is payable for deed registration.
After verifying the document and checking the provided proofs, the sub-registrar creates a registered deed within a few days. The releasor or release can visit the office again to collect the document.

Who Can Create a Relinquishment Deed?

Only a property’s legal heir can create a deed to relinquish their share. It allows the transfer of rights over an inherited or co-owned property to another legal heir or co-owner, promoting transparency and fairness.

What is the Difference Between a Relinquishment Deed and a Gift Deed?

Here is a list of differences between a relinquishment deed and a gift deed:

Relinquishment Deed	Gift Deed
Relinquishes an individual’s rights over a property	Involves voluntary transfer of property ownership as a gift
Used when a legal heir or co-owner wants to give up their property share	Used when someone wants to gift a property to another person
Does not involve payment consideration	Might involve payment consideration
The releasor gives up their property claims and interests	The recipient receives complete rights and ownership over the property
Can be cancelled or revoked under certain legal provisions	Usually irrevocable unless under certain legal agreements and conditions
Clarifies and transfers the property rights among heirs and co-owners	Lawfully transfers the property as a gift to another individual

FAQ’s About Relinquishment Deed

Does a relinquishment deed attract stamp duty?

The relinquishment deed stamp duty is applicable at 6% for men and 4% for women.

What is the power of a relinquishment deed?

A letter of relinquishment is a legal document that one legal heir uses to relinquish their legal rights over parental property to another legal heir, such as their brother, sister, mother, daughter, or son.

What is the time limit for a relinquishment deed?

The time limit within which any party can challenge the deed is three years from the transfer date.

How do I apply for a relinquishment deed?

Prepare a relinquishment deed and visit the local sub-registrar's office to apply and register a relinquishment deed.

Why is a relinquishment deed important?

Now that you know the relinquishment deed meaning, you must understand that it is a legal document that transfers a property’s ownership from one person to another and makes it legally binding.