India is a country that believes in the power of Real Estate. It still is considered as one of the safest investment with the highest appreciation rate. With the real estate industry being in a boom forever it is vital to know about the essentials such as Relinquishment Deed. In this article, we are going to discuss everything you need to know about what is a Relinquishment Deed and the procedure to register it.
Meaning of Relinquishment Deed
A Relinquishment Deed as per the Civil Law in India can be termed as a legal document where a legitimate heir wilfully releases or gives up his rights on a property that was inherited, parental or joint in favor of other legal heirs of that property. The other legal heirs can be a brother, sister, mother, father, son daughter, etc. Inheritance in India leads to the distribution of share in a property to legal heirs.
It clears that Relinquishment as the word signifies surrender of right, interest, and title by one co-owner in favor of the other co-owners leading to enlargement of the share of other co-owners in that property.
Who can Relinquish Property?
A person who is a legal heir who has inherited the property and is a co-owner in a joint, parental or inherited property can relinquish the property. In simple words, only a person who has shared in the property can relinquish the property in favor of other co-owners.
For instance, if a person had property and died without leaving a will, his property got passed on to his three sons. Out of which when one son abandoned his share in the property he is said to have relinquished the property which in turn leads to enlargement of the share of the other two brothers in that property.
In whose name property can be relinquished?
As the definition and explanation of the relinquishment state, a property can be relinquished only in the name of another co-owner who is a legal heir of that property. In short, a property cannot be relinquished to a third party who did not have any share in the property firsthand. Â This means any owner can not relinquish it in favor of any other party than the co-owners only.
Steps to register a Relinquishment Deed
Since relinquishment deed is a legal instrument by which a person abandons all his rights and transfers them to other co-owners, it must be drafted and executed in accordance with the provisions of Section 17 of the Registration Act, 1908. Following are the important steps in getting a relinquishment deed registered.
- A relinquishment deed needs to be drafted by a legal expert/ lawyer in the format specified in section 17 on an INR100 stamp paper mentioning all the details.
- The said deed then needs to be submitted to the sub-registrar office for registration by paying fees ranging between INR100-300.
- On the date of registration, both the parties need to be present with two witnesses and proof of identities.
There are absolute essentials of a Relinquishment Deed which are explained briefly below.
- For a valid relinquishment, the property must be owned by more than two owners.
- A relinquishment deed is irrevocable.
- A property can be relinquished in favor of other co-owners only.
- The document must be registered.
- The deed can be registered only in the sub-registrar office in whose jurisdiction the property is situated.
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