A Relinquishment Deed is used by a co-owner to permanently give up his/her share in a jointly owned property in favour of another co-owner, and must be duly stamped and registered.
Key Details of a Relinquishment Deed
- Nature: A Relinquishment Deed is a legal document by which a co-owner releases or gives up his/her share in a property in favour of another co-owner.
- Transfer of Share: It does not create new ownership, but enlarges the share of the remaining co-owner(s).
- Consideration:
- May be with or without consideration.
- If consideration is paid, it must be clearly mentioned.
- Relationship: Commonly executed among family members (legal heirs/co-owners).
- Irrevocable: Once executed and registered, it cannot be revoked unilaterally.
- No Possession Transfer Clause Required: Since possession is usually joint or already vested.
- Stamp Duty: Payable as per State Stamp Act (often concessional for family members).
Applicability of a Relinquishment Deed
A Relinquishment Deed is applicable when :
- Property is jointly owned.
- One or more co-owners wish to surrender their share in favour of another co-owner.
- Common scenarios:
- - Legal heirs relinquishing rights in ancestral or inherited property.
- - Siblings relinquishing share in favour of one sibling.
- - Family settlement situations.
- Applicable only among co-owners.
- - ❗ Cannot be executed in favour of a stranger (otherwise Gift Deed or Sale Deed is required).
Requirements for a Valid Relinquishment Deed
A. Legal Requirements
- Parties must be co-owners of the property.
- Free consent of the executant (no coercion, fraud, or undue influence).
- Clear identification of relinquished share.
- Lawful consideration, if any.
B. Documentation
- Previous title documents / chain of title.
- Proof of co-ownership (Will, succession certificate, legal heirship, partition deed, etc.).
- Property card / 7-12 extract / CTS extract.
- Identity & address proofs of parties.
- PAN cards.
- Death certificate of original owner (if inherited property).
- Society NOC / share certificate (for flats).
C. Registration & Stamp Duty
- Compulsory registration under the Registration Act, 1908.
- Stamp duty paid as per State law.
- Execution before Sub-Registrar of Assurances.
- Two witnesses required.