What is Relinquishment Deed?
The word relinquish is derived from the Latin word ‘relinquere’ which literally translates into leaving behind, abandoning, or forsaking something. A Relinquishment Deed thus, is a legal document which is written by an individual who wishes to legally and formally release his/her legal right and power over a particular property. This way the concerned property is relinquished by the individual who prepares such a relinquishment deed in the name of some other person/persons. This is one of the legally accepted ways of transferring rights over an immovable property from one individual to other individuals.
Relinquishment Deed Format
Any legal document has a stipulated format and language which needs to be adhered to in order to maintain the sanctity and legality of the document. A Relinquishment Deed Format too is a legal document and thus has stipulated format. An example of the format of relinquishment Deed is presented below.
Relinquishment Deed in Joint Property
A joint property where more than one owner co-owns a single property can also have a situation where one of the owners of this joint property wishes to leave his/her legal rights over the property. In such a scenario, the owner who wishes to leave his/her rights can relinquish the property by a registered Relinquishment Deed. The co-owner thus transfers his/her rights over the jointly owned property through this relinquishment deed. This deed ensures a smooth transfer. In case such properties have been inherited from ancestors or parents and/or jointly owned by more than one owner, the owner/s who is relinquishing their stake is mandated to sign the deed for clarity and legal validation.
Such a relinquishment deed once made is irrevocable unlike any other agreement even when the owner who is relinquishing his/her ownership in the said property without being compensated. The relinquishment deed is a legal document involving the transfer of an immovable property and thus needs to be signed by both the parties (the party which relinquishes his/her legal right and the party upon whom such property rights are relinquished), stamped and duly registered in order to give a legal validity to the document. However, the stamp duty will only be charged for the portion of the property being relinquished rather than on the entire property value. Since the term Relinquishment finds a legal stand under Section 17 of the Registration Act, 1908, such a relinquishment deed needs to be registered compulsorily at the office the sub-registrar of the jurisdiction where such property exists. Unregistered relinquishment deeds do not have legal validity and thus cannot be presented as legal proof of relinquishment.
A relinquishment deed can only be made in the name of co-owner of a property. It cannot be relinquished in the name of a non-co-owner. Any transfer of property in the name of a non-co-owner would be treated as a gift and thus would require a gift deed than a relinquishment deed. The act of relinquishment is merely an act of transfer of rights and not a gift. Therefore relinquishment does not have any benefit as far as taxation is concerned.
Important Elements of Relinquishment Deed.
Since Relinquishments Deed is a legal document which transfers the legal rights of one of the co-owner of a property upon other co-owner/s, some of the important elements of a Relinquishment Deed would obviously include the promise to transfer such legal rights upon a property from one co-owner to other co-owner/s. such transfer of rights should be legally valid and legally registered in order to prove its legal validity. The Relinquishment Deed should further clearly specify the portion of the property which is being relinquished and the stamp duty while registering the relinquishment deed would be calculated on this basis alone. The deed should also be fortified by two witnesses who need to sign such document to state that the act of relinquishment has happened in their presence. A relinquishment deed should mandatorily be registered with the Sub Registrar office in the jurisdiction in which the said property is located.
Cost of Relinquishment Deed
Every State and Union Territory in India have their own mandated rates of executing a legal deed. Similarly, the cost of Relinquishment Deed would differ from state to state. However, it is important that when such relinquishment deed is being registered, the parties need to pay the necessary stamp duty as prescribed by the individual states calculated on the value of the part of the property being relinquished only.