Introduction
The term relinquishment refers to the abandoning and surrender of the rights, title, and interest, by one co-owner of property for the other co-owners. The consequences of relinquishment of one co-owner’s share in property are the enlargement of the shares of the other co-owners.
Relinquish Deed
Relinquishment deed is a Legal Document / Instrument where a person legally or formally gives up or releases his legal rights of the said property being relinquished in the name of some other person. This is one of the modes of transferring rights of an Immovable Property. A Relinquishment deed is only valid if and only when the property relinquished is an inherited property
A lot of time we have seen a situation whereby when a person dies intestate (i.e. without writing a testamentary will or a Will), the properties of the deceased would be automatically inherited by his legal heir. It is then up to the legal heir to do whatsoever pleases him with the property. If the legal heir decides not to keep the property for reasons best known to him, he can relinquish his share in favor of another person. The process of transferring the property of the deceased by a legal heir in favor of another person is known as “Relinquishment of Property”.
Who can Relinquish Property?
The relinquishment of property can only be done by someone who has a share in the property. In case there is more than one owner in a property, either of the co-owners can do relinquishment. For a valid relinquishment, the essentials of a valid contract are to be followed other than the compensation.
In whose name can a property be Relinquished?
The relinquishment of property can only be done in the name of a person who is co-owner or co-sharer in the property. Or in other words, relinquishment of property can not be done in the name of any third person other than the already existing co-owner. Hence, for a valid relinquishment, the person getting the relinquished property must be a legal heir.
Essentials Elements of Relinquishment Deed
- Legal document: A relinquishment deed is a legal instrument which an heir can leverage to transfer or release his legal right of an inherited property to another person.
- Must be in writing: The relinquishment of right in the case of immovable property needs to be done only through a written document called relinquishment deed which must be signed by all the parties and witnessed by at least two witnesses.
- Must be registered: The registration takes place in the office of the sub-registrar within whose jurisdiction the property is situated.
- Consequences: The effects of such transfer of rights are the release of the share of one co-owner and the enlargement of the shares of the other co-owners.
- Irrevocable: A release or relinquishment deed is irrevocable even if it made without any consideration. For a valid relinquishment, the property must be owned by more than one person.
- Relinquishment cannot be done in favour of a 3rd person: Relinquishment of property can’t be made in favour of a person other than a co-owner. If a relinquishment is made in favour of a person who is not a co-owner, the transaction will be treated as a gift.
- Consideration: A relinquishment deed can be done with or without any consideration (price).
- Simplified process: The process of registering a relinquishment deep is simple, easy, and affordable. Usually, it takes just a few days to complete the registration.
Registration of Relinquishment Deed
To register a relinquishment deed it is advised to consult a lawyer who can draft the deed for you, and in case you know the legal methodology and terminology you can do that on your own. Following steps are to be followed to get a relinquishment deed registered:. The following procedures are required to register a relinquishment deed:
- Stamp Paper is purchased for the execution
- The Relinquishment Deed is drafted or prepared by a legal expert
- A date is fixed for the registration in the Sub-Registrar office
- The Government registration fee is paid
- Registered Relinquishment Deed is collected after specified period
