Overview of Relinquishment Deed
Many people neglect creating a will for years & sometimes die without one. It is said that if the person died without a will, it is called as “intestate”. It also includes the property of a person which was inherited by his/her legal heir. In that case, they can go for relinquishment deed, which allows a smooth transfer of property - if there are two or more legal heirs, and can request to separate the property in future.
A relinquishment deed is termed as a legal necessary paper where a legal heir gives up his/her legal rights to ‘inherited property’ in good faith of other heirs. When the person dies intestate, the relinquishment deed transfers ownership. The legal heir (by inheritance) will transfer their shares in favor of co-owner or an additional legal heir, of the same property. A relinquishment deed will be assigned either for consideration or with no consideration. Conversely, the parties involved must be co-owners of the property for the transfer to be released or relinquished.
What are the Key Components of a Relinquishment Deed?
- Registration of Deed
Relinquishment deed is an essential legal necessary paper that is mandatory to get registered at the concerned sub-registrar office under "Section 17 of the Registration Act, 1908".
- Legal Rights
An heir can transfer or release his constitutional right of the inherited property through the Relinquishment deed (legal necessary paper).
A relinquishment can be made for a valid consideration (Release Deed) or even with no consideration.
Even if the relinquishment deed is done without any consideration, it is meant that its release is irrevocable by nature. More than one person should own the property if in question for a valid Relinquishment.
What are the essential considerations that need to be in the Relinquishment deed?
- Title Description
The introduction section of the Relinquishment deed should contain the words ‘relinquishment deed/deed’ with the details of “date of creation” of the necessary paper.
- Executant and Releasor
Since the rights are to be released in a property by executing the necessary paper, therefore the person who makes the relinquishment deed is known as a releasor/executant. The details such as full name, father’s/husband’s name, and domestic address is required. It may be one or more of the prevailing shareowners.
The person is known as a releasee who receives the relinquished titles/ rights/share. Attention should be taken to comprise all details like full name, father’s/husband’s name, and full address.
- Property Details
The details of the entire property are vital (name of the last owner). It is implied that it is no need for a relinquishment deed for a property owned absolutely by a single owner only if there is no absolute owner at present. It is needed to mention all minute details such as a complete address, registration details, survey number, Sub-registrar office details like volume number, book number, office name, etc.
- State the Purpose
The prime purpose should be mentioned in a relinquishment deed. It can happen that the absolute owner of the whole property died “intestate.” There would be no 'complications' that would amplify the creation of a relinquishment deed if there been a testament/will. It is because since division would be comparatively more straightforward and obviously with different shares.
- Heir Particulars
All present heirs to that property must be named preferably in a table with details like age, address, details of name/title, and relationship to the deceased ‘absolute owner.’
- Share Particulars
The property will be owned by heirs according to the applicable “Succession Act” if there is no existing will to the creation of the relinquishment deed, the proportion of shares held by each heir up should be stated.
The releasors/executants releasing their 'shares in the property', in favor of the releasee, are the most important clause in a relinquishment deed. It should mention that it has been done out of natural love and affection and without any monetary consideration.
The property must be termed once again accompanied by a declaration that they and their legal heirs will have no claim above the mentioned property. It will be said that the property rights shall vest absolutely with the releasee only if all remaining heirs release their shares in favor of one heir.
- Authorized Signatures
All the releasee and the executants shall sign the necessary paper. Before being registered at the specified Sub-registrar office, it must be attested by two witnesses where the property is located.
What are the benefits of executing a Relinquishment Deed?
- Seamless Transfer
A relinquishment deed when it is jointly owned is responsible for the smooth transfer of property.
- Secure transfer if no Will
If in the event of a death-no will have been written by the deceased individual (or intestate), in that case, relinquishment deed comforts in the transfer of property.
- Other Heirs
A relinquishment deed permits a legal heir to transfer ownership of the inherited property to additional legal heirs.
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What are the necessary papers required for a Relinquishment Deed?
What is the Registration Procedure of Relinquishment Deed?
The Relinquishment deed must be registered as per Section 17 of the Registration Act, 1908. It is because the said deed is a legal necessary paper in which a legal heir transfers his constitutional rights in an inherited property in the act of kindness of other legal heirs.
The following are the steps comprised in the Registration of a Relinquishment deed. Those are as follows:-
CorpBiz Procedure for Relinquishment deed
A Relinquishment Deed is a compulsory legal agreement, the terms of which are fundamental in the existence of transfer of Property. The Relinquishment Deed shall be prepared with careful consideration, and plenty of time should be allowed for all stages of the drafting Registration procedure. It is advisable that a real estate attorney with significant 'Property Transfer experience' must be appointed to overwhelm many of the potential pitfalls that creep around within Relinquishment Deed.
CorpBiz recommends you that you should be in contact with an advisor to understand the requirement in detail. The elementary information would be mandatory from your end to start the process. The lawyers will begin working on your necessary paper once all the information is provided, and the payment is received. CorpBiz legal representative will coordinate with the Sub-Registrar’s office to safe and sound a date for the registration process. Also, you will acquire the first draft of your authorized necessary paper within a few business days. You can evaluate the necessary paper, and intimate for the corrections in case of any modifications.
CorpBiz is one of the platforms which coordinate to fulfill all your legal requirements and connect you to consistent professionals. Yes, our clients are pleased with our legal service! Because of our focus on simplifying legal requirements, they have consistently regarded us highly and providing regular updates.
Our clients can also track at all times the progress on our platform. If you have any questions about the Relinquishment Deed for the registration process, our experienced legal advisors are just a phone call away. CorpBiz will ensure that your communication with professionals is charming and seamless.
What are the Points to be considered on Relinquishment Deed?
What is the validity of the Relinquishment Deed?
If the following situations are fulfilled, the relinquishment Deed will be considered valid. Those situations follow:-
Is it possible to challenge a Relinquishment Deed?
By and large, if any person transferring his/her claim over property has changed their mind, any registered deed cannot be revoked just on this ground. Relinquishment Deed used for revoking a general contract can be challenged based on the same grounds. It can only be revoked not as per your wishes but when there is a lack of agreement.
The parties involved, i.e., the person, must give their consent to the cancellation whose favour it was relinquished and who relinquished his property to revoke a Relinquishment deed. You can also approach the Civil Court to cancel the deed if the beneficiary of property is reluctant to cancel the Relinquishment deed. The available period is three years for challenging a Relinquishment deed according to the Limitation Act.