A relinquishment deed is a legal document used when one co-owner gives up their share in a jointly owned property in favour of another co-owner. It is commonly used in family settlements, especially in cases of inherited property, to avoid future disputes.
This document ensures a smooth and legally valid transfer of ownership rights and helps maintain clarity in property records. By officially recording the transfer, it protects the rights of all parties involved. In this article, we explain the purpose, process, and importance of a relinquishment deed in property-related matters.
What is a relinquishment deed?
A relinquishment deed is a document used to transfer property ownership rights from one person to the other. By signing this document, you voluntarily renounce your legal rights to a particular property.
Relinquishment deeds are voluntary documents. Hence, it is mostly used in cases where co-owners of a property agree with each other. Once the deed is passed, the individual relinquishing their rights will have no future claims on the property.
Objectives of a relinquishment deed
A relinquishment deed is an important document in property-related matters. Here are a few important objectives of this deed:
Clarity in Ownership: The deed’s primary purpose clearly defines who owns the property. By relinquishing rights, you clear the path for the new sole owner, bringing in much-needed clarity in the property documents.
Preventing Future Disputes: Most properties with more than one owner bring some disagreement. This deed helps in preventing such disputes. With a record in place, it ensures that the person giving up the rights cannot stake a claim in the future.
Smooth Property Transfer: Another important objective of this deed is to help seamlessly transfer property rights. With this one document, co-owners can avoid a long and tedious buying and selling process.
Benefits of relinquishment deed
Signing a relinquishment deed comes with its own sets of benefits:
Seamless Property Transfer: Relinquishment deeds simplify the process of transferring property ownership. They provide a structured legal framework for relinquishing one’s share in a property, ensuring that the transfer is conducted correctly and efficiently.
Legal Protection: The deed offers legal protection to all parties involved. Once the act is registered, the transaction becomes legally valid, providing security and assurance to both, the one who is relinquishing the deed and the recipient.
Cost-effective: Relinquishment deeds can be a cost-effective way to transfer property interests, especially when compared to the expenses of lengthy legal battles or property sales. The stamp duty payable on relinquishment deeds is often lower than on property sales.
Faster Process: Property transactions involving a relinquishment deed are quicker and more straightforward. The legal process for relinquishing one’s share is well-defined, and registration ensures the timely transfer of ownership.
When to create a relinquishment deed?
A relinquishment deed can be created in the following scenarios:
Death: When a co-owner of a property passes away, their legal heirs may choose to create a relinquishment deed to redistribute the property’s ownership among the surviving co-owners or legal heirs. This helps in clarifying property rights and minimising potential disputes.
Divorce: In the event of a divorce, especially when a jointly owned property is involved, one party may decide to relinquish their share in favour of the other spouse. This is often part of a divorce settlement and ensures a clean and efficient transfer of property rights.
Urgent need for funds: Sometimes, individuals may face financial crises or critical monetary requirements. In such cases, they may create a relinquishment deed to transfer their share in a property to another party in exchange for funds. This can be a quicker way to raise money than selling the property outright.
Minor Legal Heir: If a minor becomes the legal heir to a property, they may not have the capabilities to manage their property rights effectively. At times like these, the legal guardian or parent of the minor can create a relinquishment deed to transfer the minor’s share to another co-owner, ensuring that the property is managed effectively until the minor reaches the legal age.
Who Can Create a Relinquishment Deed?
A relinquishment deed can only be made by the legal heirs of a property. It is used when one heir wants to give up their share in favour of another heir. This often happens in cases of inherited property and helps avoid future disagreements.
In some situations, a spouse may give up their share during a divorce settlement. A co-owner who needs money urgently may also give up their part of the property to get funds. If a minor is involved, the guardian can sign the deed with court approval.
Sometimes, a co-owner planning to take a loan may request others to give up their share for smoother processing.
Documents Required for Relinquishment Deed
For successful registration of a relinquishment deed, the following documents are typically required:
Original relinquishment deed drafted in the prescribed format
Proof of identity of both parties (like Aadhar, Passport, or Voter ID)
PAN card of the two parties
Original property documents
Passport-sized photographs of both parties
Details of co-owners
Property Description
Relinquishment deed registration process
Registering a relinquishment deed is crucial for its legal validity. Here is a simplified step-by-step process:
Draft the Deed: The first step is to draft the deed in the prescribed relinquishment deed format. It’s advisable to get legal assistance for accurate drafting.
Pay the Stamp Duty: Before registration, the deed must be stamped. The stamp duty varies depending on the jurisdiction and the property’s market value.
Visit the Registrar’s Office: The next step is to visit the local Sub-Registrar’s Office. Both parties (the one relinquishing and the one receiving the rights) should be present, along with the original documents and two witnesses.
Verification and Registration: The Sub-Registrar verifies the document, and upon satisfaction, the relinquishment deed is registered.
Is it possible to revoke a relinquishment deed?
Your relinquishment deed can be revoked. This is only possible in these cases:
When there has been a misinterpretation of your intentions within the document
When someone has exerted undue influence or coercion to compel you to sign the deed
In the event of a fraudulent act designed to deceive you
What is the Difference Between a Relinquishment Deed and a Gift Deed?
Here’s a detailed comparison between a relinquishment deed and a gift deed.
Point of Difference
Relinquishment Deed
Gift Deed
Meaning
One person gives up their share in a jointly owned or inherited property.
One person gifts their property to another without expecting anything in return.
Who Can Use It
Only legal heirs or co-owners of a property.
Anyone who owns a property can gift it to another person.
Reason for Use
Mostly used in family property matters or after inheritance.
Usually done out of love, care, or personal reasons.
Involvement of Money
No money or exchange takes place.
Generally no money involved, but can involve small consideration in rare cases.
Ownership Rights
The person giving up the share loses all rights to that part of the property.
The person receiving the gift gets full ownership of the property.
Purpose
Helps settle or divide property among heirs or co-owners.
Used to transfer property as a gift to someone else.
Cancellation
Can be cancelled under specific legal conditions.
Normally can’t be cancelled once made, unless both sides agree legally.
Bottom line
While property matters may seem complex, instruments like the relinquishment deed make navigation clearer and safer. Appropriately using this deed lets you get a clear, straightforward, and legally backed approach to transferring property rights.
But if you want to buy your property after renouncing the older one, you would better finance it through a home loan. Tata Capital makes getting a home loan easier than ever. With minimal documentation and speedy approvals, funding your dream home can now be done within minutes.
After registering a relinquishment deed, the person giving up their share loses all rights over the property. They can't claim ownership, profits, or benefits from it in the future. The new owner becomes the full legal holder of that share.
Which is better: a relinquishment deed or a gift deed?
Both deeds are permanent. But a gift deed can be challenged in court, while a properly made relinquishment deed is harder to dispute. So, for co-owned property, a relinquishment deed is often safer to avoid future issues.
What is relinquishment in property law?
Relinquishment is when one co-owner or legal heir gives up their share in a jointly owned property. It’s commonly used to transfer rights to another family member or co-owner, especially after inheritance or during property settlement.
Is relinquishment transfer of property taxable?
Relinquishment of property can attract capital gains tax. If the person giving up their share receives money, it's considered a transfer. The amount received is taxed based on the cost of acquisition and the current market value.
Is the relinquishment deed enough to sell a property?
A relinquishment deed only transfers one person’s share to another co-owner. It doesn’t allow a full property sale. To sell the entire property, all legal owners must sign the sale deed and agree to the transaction.
02 April 2025
7 mins read
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