Relinquishment Deed Registration
Seamless Transfer of Property Rights in India
At Tax Pal Solutions, we assist co-owners and legal heirs in registering Relinquishment Deeds. This ensures a legally valid and dispute-free transfer of property shares while complying with Indian property laws. Our services cover drafting, stamping, coordination with Sub-Registrar, and complete execution support.
What is a Relinquishment Deed?
A Relinquishment Deed is a legal document used when a co-owner or legal heir gives up their share in a property to another co-owner or legal heir.
Key points:
- Ensures voluntary transfer of rights
- Commonly used in inheritance or family property settlements
- Must be registered at the Sub-Registrar Office for legal recognition
- Helps prevent future disputes among co-owners
Rules for Relinquishment Deed Registration
- Must be in writing; oral agreements are invalid
- Signed by all parties: releasor and releasee
- Registration is compulsory under the Registration Act, 1908
- Stamp duty must be paid before registration
- At least two witnesses are required
- Only co-owners or legal heirs can relinquish property rights
- Irrevocable once registered unless court orders cancellation or mutual consent
Relinquishment Deed vs Gift Deed
| Feature | Relinquishment Deed | Gift Deed |
|---|---|---|
| Purpose | Gives up a person’s rights in property | Transfers property ownership as a gift |
| Common Use | Among co-owners or legal heirs | To gift property to someone else |
| Payment | No money exchanged | May or may not involve money |
| Ownership | Only share/rights are relinquished | Receiver gets full ownership |
| Revocation | Possible in some legal situations | Usually not cancelable unless law allows |
| Tax | Generally tax-free among family/legal heirs | May attract gift tax if recipient is non-relative |
Benefits of a Relinquishment Deed
- Transfers ownership clearly and legally
- Prevents future disputes among co-owners
- Supports property mutation in municipal/revenue records
- Confirms voluntary consent
- Establishes clear legal title after registration
- Facilitates family property settlements
- Cost-effective and time-saving compared to court procedures
Who Can Execute a Relinquishment Deed?
- Legal heirs or co-owners of a property
- Common in inheritance settlements or joint ownership dissolution
- Cannot be executed by someone without ownership rights
Situations include:
- Intestate succession (property division without a will)
- Ending joint ownership
- Avoiding family disputes
- Home loan co-owner exit, with lender approval
Required Documents
| Document Type | Purpose |
|---|---|
| Proof of property ownership | To establish existing title and co-ownership (title deed, sale deed, mutation certificate) |
| Draft of the relinquishment deed | Main legal document for registration |
| ID proofs | Verification of releasor, releasee, and witnesses |
| Stamp duty payment receipt | Proof of stamp duty payment |
| Passport-sized photographs | Required for official registration |
| No-Objection Certificate (if needed) | Confirms other co-owner’s agreement |
Steps to Register a Relinquishment Deed
- Draft the Deed – Prepare a draft detailing property, releasor, and releasee
- Print on Stamp Paper – Use non-judicial stamp paper of appropriate value
- Visit Sub-Registrar – Both parties and two witnesses must be present
- Submit Documents – Include all required proofs and draft deed
- Sign in Front of Registrar – Releasor, releasee, and witnesses sign
- Receive Registration Certificate – Proof of legal transfer
Charges for Relinquishment Deed
| Charge Type | Details |
|---|---|
| Stamp Duty | 1% to 5% of property share value (varies by state and relation; concessional rates for close relatives) |
| Registration Fee | Typically Rs. 1,000 to Rs. 2,000 (may vary by location) |
| Legal/Drafting Fees | Rs. 1,000 to Rs. 5,000 (if prepared by a lawyer or professional) |
Note: Actual charges may vary depending on the state and relationship between parties.
Consequences of Non-Registration
- No legal proof in court
- Ownership disputes among family members
- Property share not officially transferred
- Banks/buyers may refuse loans or transactions
- Loss of legal protection against fraud or misuse
Applicable laws:
- Hindu Succession Act, 1956 for Hindus, Sikhs, Buddhists, and Jains
- Personal laws for Muslims, aligned with principles of 'Hiba'
Can a Relinquishment Deed be Revoked?
- Mutual Consent – Both parties agree and register cancellation deed
- Fraud or Misrepresentation – Court can cancel the deed if undue influence is proved
- Court Order – Deed can be revoked under Section 31 of the Specific Relief Act, 1963
Relinquishment Deed Format
A standard format includes:
- Title: “Relinquishment Deed”
- Date and place of execution
- Details of releasor and releasee
- Property description and share details
- Declaration of voluntary relinquishment
- Signatures of parties and witnesses
- Registration details
Certification
