Are you thinking of legally giving away interest in a family property without further complications? For whatever reason-whether it be a life-changing event that changes people, or just a family decision ratified with goodwill-there is a straightforward way to legally make it so. It is meant to identify ownership with simplicity, so parties will never fight over ownership issues later, thus bringing clarity to property matters. But who can use it-and when? Here is a quick overview which you must know.
What is a Relinquishment Deed?
A relinquishment deed is a legal document used to transfer property ownership from one person to another. This deed comes into play when a property heir or a co-worker gives up their ownership in favour of another, upon mutual agreement. This deed is valid only when the person relinquishing their property share and signs the deed with two witnesses attesting to it. The registration of the relinquishment deed should then be legally bound in the contract with the relevant authorities to make it valid.
Objectives of Relinquishment Deed
- Clarifying ownership rights: It clears the title of the property by restricting ownership to fewer parties.
- Avoiding future disputes: In case there is ownership established, it saves the parties from undue legal or familial tussle in the future.
- Facilitating sale or development: Once there is a clear title, it thus facilitates the sale, lease, or any further development of the property.
- Formalising voluntary transfers: The deed would formalise mutual agreement among family members regarding ownership transfer.
Features of a Relinquishment Deed
Rights and Share Transfer
A relinquishment deed helps in transferring shares, interests, rights, and titles from one co-owner to the other or others. For instance, if the parent of a family dies, leaving the house to her son and daughter, the son may relinquish his property rights or a part of the property in favour of his sister for consideration.
Voluntary Transfer
Surrender or relinquishment has to be voluntary and legal; otherwise, the deed becomes void if a person is forced into relinquishment. So, going by our example, the brother must voluntarily surrender to his sister his right over the property.
Co-Ownership or Joint Ownership
Relinquishment deeds can only be executed as a transfer of rights and shares in properties that are co-owned or jointly owned. So, as in the example, the brother and sister stand as joint inheritors of the property, and one surrendering claim thereto must be to the other.
Transfer of Liabilities
In the event that a relinquishment deed is executed, the person relinquishing his rights also thereby transfers any responsibilities or liabilities attached to the property. This can carry with it paying property taxes, mortgages, maintenance, and so on.
Validity
One way of execution would be a standard format of the relinquishment deed on 100 Rs. stamp paper and registration at the sub-registrar’s office in the presence of witnesses, thus making this deed a legally binding document. A nominal
Benefits of a Relinquishment Deed
- Simpler Property Transfer: The relinquishment deed essentially simplifies the property transfer process from one legal heir/co-owner to another without the necessity to execute a sale deed.
- Ensures Smooth Property Succession: This deed would ensure a smooth and quick succession of a property from one generation to the next without any interference.
- Legal Protection: The deed legally protects all parties by having unequivocal documentation of ownership transfer.
- Avoids Legal Disputes: The recording of such a deed in the register would impede any kind of legal dispute arising between heirs in respect of inheritance and ownership, claiming the releasor has relinquished their rights over the property.
- Saves Money: One of the highlights of the letter of relinquishment is that it is an inexpensive approach for transferring property to other heirs or co-owners, thus preventing the protracted and expensive legal process.
Documents Required for Relinquishment Deed
The documents required for signing a relinquishment deed include:
- Registered and legal documents of the property.
- Details of the property co-owners.
- A written document showcasing the intention of relinquishment.
- Particulars of the relinquishment deed.
- Details of the releasor and releasee, including the name, address and age.
- Property description.
- Consideration details
- Identity proof: Aadhaar Card, PAN Card, and other proofs of both parties.
- Agreements associated with the property.
- Other documents or agreements related to the property.
How to Register a Relinquishment Deed?
Preparation of Deed
Initially, draft the relinquishment deed on ₹100 stamp paper. It should include details like the address of the property, the name of the person relinquishing the share (releasor), the name of the person acquiring the share (releasee), the list of legal heirs, and an explicit statement that the share is being relinquished. The deed should be signed by both parties and by two witnesses.
Collect Documents
Pre-requisite documents are to be collected including original and photocopies of ID proofs (Aadhaar or PAN), address proof, passport-size photos, and title deeds. Both parties and the witnesses must bring their respective set of documents.
Reach Out to Sub-Registrar’s Office
The parties to the transaction must go to the sub-registrar’s office in the area where the property is situated. Carry with you all the documents.
Pay Registration Fee
A small sum will be charged as the registration fee at the counter; it usually ranges from ₹100 to ₹250 but this charge may differ from place to place.
Document Verification
The sub-registrar will check the deed and all the documents. The sub-registrar will take the signature and biometric details such as finger prints of the parties. After completion of the requisite formalities, the sub-registrar shall accept the deed for registration.
Collect Registered Deed
After a few days, the registered copy of the deed will be ready for collection, thereby giving you legal proof that the share in the property has been relinquished by you.
When and Who Can Create a Relinquishment Deed?
Relinquishment deeds can be executed only by the legal heirs or co-owners of a property. Thus, they transfer their rightful shares in favor of another legal heir or co-owner. Common occurrences under which a relinquishment deed is typically created are:
- After a Death: If a person dies intestate, the legal heirs may create a relinquishment deed to convey their share to another legal heir.
- During Divorce: Either one of the spouses may relinquish their share of the property to the other spouse as part of the divorce proceedings.
- Out of Financial Need: A co-owner disposes of his or her interest in exchange for cash to meet some immediate financial obligations.
- On Behalf of a Minor: A guardian can relinquish the share of a minor heir with the approval of the court.
- Out of goodwill: One of the legal heirs may surrender his/her share to another legal heir because of the love or understanding within the family.
Conclusion
Property ownership can be quite tricky, especially when feelings and family dynamics come into play. A Relinquishment Deed helps in cleanly transferring ownership rights among co-owners or legal heirs with due legal clarity to prevent duplicate ownership or ownership disputes. In view of its legal implications, it is always better to take legal advice for proper drawing and registration of the deed.
In any case, always approach a good legal expert who may provide you full guidance in drafting and registration of the deed. Taking the right legal measures today might become a source of assurance for you and your affected family forever.