It would be necessary to prepare and record a relinquishment document to permit a co-owner to lawfully transfer their share of the property to another co-owner. When a Hindu property is owned jointly, co-owners can surrender their claim to its immovable property by abandoning ownership. This article discusses a variety of topics such as what a relinquishment deed is, whether it is valid, how to register one, and what its benefits are.
What Does a Relinquishment Deed Mean
The deed of relinquishment is a legal document in which legal heirs relinquish their legal rights to inherited property in exchange for the good faith of other heirs. In the event of intestate death, the relinquishment deed transfers title. Legal heirs will pass their interests on to their co-owners or other legal heirs by inheritance. The relinquishment deed will either be for consideration or without consideration. It is not possible to release a transfer or surrender a property without the consent of the co-owners.
The relinquishment deed includes the following elements:
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It must be written
When relinquishing rights over immovable property, it must be done in writing through a document known as a relinquishment deed. At least two witnesses must witness the signatures of all parties.
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Consequences
An agreement such as this involves the transfer of rights of one co-owner of a co-share and the expansion of the shares of the other co-owners as a result of this type of arrangement.
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Registration is required
The Registration Act of 1908 provides that releases of immovable property rights must be recorded. A release of immovable property rights takes place at the sub-office registrar’s office of the jurisdiction where the property is located and is governed by Section 18 of that Act.
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Irrevocable
If a release or relinquishment deed is made without the intention of making a change, then it is irrevocable. Moreover, the property must be owned by more than one person to protect the property’s ownership rights.
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Easy to Draft
The process of preparing and registering a relinquishment deed can be completed in a matter of days and with the least amount of cost.
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Property cannot be relinquished in favor of a third party
As a general rule, one cannot relinquish property to someone other than a co-owner. If the relinquishment takes place in the name of someone who is not a co-owner, then the transaction will be recognized as a gift.
Benefits of Relinquishment Deed
- Jointly owned properties benefit from a relinquishment deed because it makes the transition easier.
- If there is no will left by a deceased individual, a relinquishment deed might be useful in transferring property (or intestate).
- An intergenerational transfer of ownership is called a relinquishment deed, and it allows one legal heir to delegate ownership of the inherited property to another legal heir.
Documents required for Relinquishment Deed
- A Release Deed requires the following information.
- An indication of the releaser’s age and address, as well as the name of the releaser.
- The address of the property, the name of the releasee, and the age of the releasee are required.
- A Relinquishment Deed must specify a fee if the release is contingent upon payment.
- Releasee and Releaser Aadhar and PAN cards information.
- It was necessary to draft a document stating the intention.
- A copy of the property’s legal documents.
