In India, the continuity of family legacies is often demonstrated via ancestral property. As generations pass, managing and distributing such inherited property becomes a difficult task. In such a situation, the Relinquishment Deed is a legal tool that is essential to the ownership transfer. This legal document facilitates the voluntary surrender or abandonment of one's claim or interest in a property.
This article will help you navigate the legal landscape by explaining what a relinquishment deed is, its importance, the procedure involved, and other relevant information.
What is a Relinquishment Deed?
A Relinquishment Deed is a legal document presented in the court that certifies that an individual has voluntarily given up or released their right, title, or interest in a property. Through this process, the property is legally handed over to another person. Relinquishment deeds are most often associated with family settlements wherein one family member decides to forgo his/her share in a property for the benefit of another family member.
Features of a Relinquishment Deed
Here are a few distinguishing features that set a Relinquishment Deed apart from other legal documents associated with property transfers:
Voluntary nature
A voluntary transfer of ownership and rights is one of the most important factors that determines whether a relinquishment deed is valid or not. For a deed to be deemed lawful, the relinquishment of property rights must be voluntary. If there is evidence of coercion or force involved, the deed shall be deemed void.
Transfer of rights
Any rights, interests, shares, and titles pertaining to a piece of property can be waived with a Relinquishment Deed. Let us look at an example to see what this implies. Let us say A, a mother of two, dies and leaves her son and daughter her Mumbai house. The son, however, determines he has no desire to share ownership of the land. In this case, he can waive his claim to the inherited property by signing a relinquishment deed in favor of his sister. The son may also decide to keep only a fraction or percentage of the Mumbai residence and not relinquish his complete ownership stake.
Applicable only against joint or co-ownership
While you may execute other legal arrangements transferring ownership for all sorts of assets, you can execute a relinquishment deed only for properties that are co-owned or jointly held.
Transfer of liabilities and encumbrances
A relinquishment deed does much more than just transfer a property owner's rights and shares to another person. Any obligations and liabilities related to the property are likewise transferred via a relinquishment deed. Shares and rights are transferred from one co-owner to another if the property has monetary or legal obligations.
Registration of Relinquishment Deed
The following steps are essential for registering a Relinquishment Deed:
The first step is to draft a deed on a stamp paper of Rs.100. It should mention all particulars, including the property details, information about the releasor and the releasee, a list of legal heirs, a statement of relinquishment, signatures, and a conclusion. Double-check the document to ensure it does not have any errors or discrepancies.
Once the document is ready, all the parties involved, with two witnesses, must visit the Sub-Registrar's Office in their locality. Everyone should carry their original and photocopies of identity proofs, address proofs, and passport-sized photographs.
A nominal fee of Rs.100 to 250 is payable for deed registration.
Stamp duty, as per the State regulations, should also be paid.
After verifying the document and checking the provided proofs, the Sub-Registrar creates a registered deed within a few days. The releasor or releasee can visit the office again to collect the document.
Revocation of Relinquishment Deed
Once a relinquishment deed has been executed and registered, it generally becomes irrevocable. This means that the act of voluntarily surrendering one's rights in a property is considered final. However, there are certain circumstances under which a relinquishment deed might be contested or invalidated.
Fraud
At times, the relinquishment deed is executed under fraudulent circumstances. This is where one party deceived or manipulated another to sign the document. Here, the affected party may have grounds to challenge the deed. Fraudulent practices could include misrepresentation of facts, concealment of crucial information, or any other dishonest conduct.
Undue influence
Sometimes, the relinquishment is done under pressure or undue influence. Undue influence implies that the person relinquishing their rights was subjected to pressure, intimidation, or persuasion. This step overcame their free will, rendering the relinquishment involuntary.
Mistake
In cases where there is a mistake in the deed, it can be revoked. This may be due to an error in drafting or a misunderstanding of its terms. It is crucial to establish that the mistake significantly affected the intention of the party who signed the relinquishment deed.
Conclusion
A relinquishment deed is a powerful legal tool for transferring property rights among co-owners. Understanding the basics of this deed can help one navigate property transfers more smoothly and avoid potential legal complications. By ensuring that the deed is drafted accurately, signed appropriately, and registered with the relevant authorities, one can achieve a clear and uncontested transfer of ownership. Whether settling an inheritance or rearranging property ownership among family members, a relinquishment deed can provide the clarity and legal protection needed for a seamless transfer process.
Comments