Real Estate 101: A Guide to the Basics of a Relinquishment Deed
Although viewing and visiting properties has become a breeze, real estate investment comes with a barrage of paperwork and documentation. If you’re a first-time buyer or need a bit of a refresher, having a handy guide to the different documents involved in real estate transactions helps. For instance, when it comes to the transfer of property rights, several legal documents can be involved. One such real estate term is the relinquishment deed, an essential instrument in the realm of property law. Whether you're transferring rights among family members or settling an inheritance matter, understanding the basics of a relinquishment deed is crucial. This guide will walk you through what a relinquishment deed for the property is, its significance, the process involved, and other pertinent details to help you navigate this legal terrain.
What is the Meaning of a Relinquishment Deed?
A relinquishment deed is a legal document in the property market used when one co-owner of a property voluntarily gives up their share of ownership in favour of another co-owner. This deed is commonly used in cases involving inherited property, where one or more heirs decide to transfer their rights to another heir. By executing a relinquishment deed, the transfer of property rights is formalized, and the relinquishing party forfeits all claims to the property.
Features of a Relinquishment Deed
Here are a few hallmark features that set a relinquishment deed apart from other legal documents associated with real estate transactions:
Share and Rights Transfer
As mentioned, a relinquishment deed is an instrument used to waive off any rights, interests, shares and titles about a property. To understand what this means, let’s consider an example. Say A, a mother of two children, passes away and bequeaths her property for sale in Mumbai to her son and daughter. However, the son decides he has no interest in co-owning the property. Here, he can execute a relinquishment deed to waive off his claim to the inherited property. He can transfer his share of the property to his sister in exchange for appropriate consideration. If the son wants, he can also choose not to part with his share of ownership entirely and relinquish only a portion or percentage of the house for sale in Mumbai.
Voluntary Nature
One of the most crucial elements, on which the validity of a relinquishment deed rests, is a voluntary transfer of ownership and rights. To be deemed legal, such a deed, and the relinquishment of property rights it is executing must be voluntarily undertaken. If there is any proof of force or coercion concerning the relinquishment the deed will be considered null and void. Let’s revisit the example we considered earlier. If, in the same circumstance, A’s son had been pressured into relinquishing his share in the property, any deed executing the same would be ineffective. Relinquishment would only work if the son willingly gave up his share to his sister in return for agreed-upon consideration.
Joint or Co-Ownership
While you can execute other legal agreements transferring ownership for all kinds of properties, you can execute a relinquishment deed only for properties that are co-owned or jointly owned. So, as per our example, the flat for sale in Mumbai bequeathed by A is jointly inherited by both the son and the daughter. Since the apartment for sale in Mumbai is jointly owned by the two children, a relinquishment deed applies to the situation.
Transfer of Liabilities
While it is true that a relinquishment deed transfers the rights and shares of a property owner to another, it does so much more. A relinquishment deed also transfers any responsibilities and liabilities attached to the property. If a property comes with financial or legal obligations, the same transfer from one co-owner to another with shares and rights. So, If A’s home had been mortgaged, the obligation would be passed down to the two co-owners and ultimately to the daughter after the son executes a relinquishment deed.
Legality
Like other legal documents, a relinquishment deed must be executed in a prescribed format. Usually, as per the relinquishment deed property format, you must execute the document on a Rs. 100 stamp paper. Once typed out, you have to register it at the nearest sub- registrar’s office in the presence of witnesses. Following such a procedure for a relinquishment deed allows it to become a legally binding document. You will have to pay a nominal stamp duty to register the deed.
Cancellation or Revocation
Although a relinquishment deed is legal, its authority can be challenged. However, to do so, the challenger must show that the relinquishing party was forced or coerced into giving up their rights and shares in the property. As per law, you can challenge a relinquishment deed within three years from the date of transfer. In such cases, all parties to the deed have to consent to cancel it
Do note that a relinquishment deed is different from a gift deed, which allows for the transfer of ownership from one person to another without any consideration. Relinquishment deeds contain an element of consideration in exchange for the waving of rights.
A relinquishment deed is a powerful legal tool for transferring property rights among co-owners, especially within families. Like any other deed, a relinquishment deed charge must be paid in full to complete the property transfer process. Understanding the basics of this deed can help you 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, you 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.
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The journey of buying your first home is like setting off on a big, exciting adventure. It's thri
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Versova: An Emerging Gem for...
Versova is known to be an upscale neighbourhood synonymous with creativity and artistic allure, o
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Net Zero: Transforming Econo...
The journey towards net zero emissions is arduous but essential. It requires collective actio
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2 BHK, 3 BHK or 4 BHK? A Com...
Choosing the perfect home is one of the most significant decisions you will make, with a long-las
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Indexation or Lower LTCG Rat...
The government has amended its contentious proposal to do away with indexation benefit on real es
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Revel in Truly Unique Experi...
Coco Chanel, the French designer and businesswoman par excellence, once said, ‘There is no time
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Pune
A Proud Palavian – Rupali ...
I started swimming at a very early age. I remember my father taking me to a nearby pool every day
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Real Estate Investment Oppor...
Buying a home is a dream that many Indians share, but it can be a challenging goal to achieve, es
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Lodha – Making India Stron...
As India continues to become one of the world’s most robust economies, it is a good time to equ
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Andheri: The Real Estate Hot...
Andheri, located in the western part of Mumbai, is not just a neighbourhood but a thriving area w
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Elevate Your Everyday Living...
At Lodha, our passion is to craft iconic landmarks that surpass global standards, embody our heri
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Smart Homes: Bridging Techno...
Close your eyes and imagine a home that knows you like the back of its hand. It senses your arriv
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Home Loan 101: A Handy Guide...
Owning property is a dream come true and a huge life milestone, regardless of whether you’re a
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Elevating Lifestyle: Embraci...
Mumbai, often referred to as the city that never sleeps, is known for its bustling stre
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Driving Economic Growth: The...
As India emerges as a global manufacturing hub, it has become crucial to acknowledge the
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Discovering Versova: Mumbai'...
Nestled along the western coast of Mumbai, Versova emerges as more than just a residential locali
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Building Wealth Early: A Gui...
In today’s age of cryptocurrency and NFTs, each new day brings along with it a new investment i
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The Art of Home: Elevate You...
A home is more than just four walls; it's a canvas for your personal style and a sanctuary for yo
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Lodha Eternis – The Hidden...
Meticulously set in the heart of Mumbai - Andheri East, Lodha Eternis is a
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Lifestyle
Satish Gaikwad, resident of ...
Sometimes in life, certain things come to you when you’re not even looking for them, and yet th
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Better Life ft. Heena Sidhu,...
After a long day of hustling, even the most energetic and hardworking people want to return to th
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The Importance of Community:...
Lodha is among the top builders in India because of our unwavering commitment to Building a Bette
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The Advantages Of Buying Rea...
Investing in real estate is an important decision that requires careful consideration. One aspect
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Luxury Living Redefined: Dis...
Our commitment to creating the world's finest developments is unwavering and deeply rooted in our
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In India, food is not just f...
When chef Pietro Leemann opened Joia—an all-Read More
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Mastering Metallics: 7 Effor...
Introducing metal decor items into your home doesn't have to result in the starkness of an all-st
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Essential Guide for First-Ti...
Venturing into homeownership is stepping onto the hallowed ground—a blend of eagerness and resp
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Unlocking Opportunities: Why...
The Mumbai Metropolitan Region (MMR) stands as a testament to the urban growth and the
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Destination Investment: Top�...
Whether you’ve made a home in the USA, the land of the free and brave, or live the charming Eur
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Versova's Connectivity Spect...
Versova has emerged as a prime investment destination in Mumbai's dynamic real estate market, rid
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Unveiling South Mumbai's Fin...
South Mumbai, the pulsating heart of India's financial capital, is a melting pot of heritage, cul
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Spectacular Spaces with Lodh...
Resisting the waves of change & urbanisation, South Mumbai has managed to hold its own agains
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Designs that Inspire and Las...
A home is a part of our personality, taste and character. It is way for us to showcase how we fee
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lodha-evoq
Lodha Panache – A Well-Con...
Located in Hinjewadi Phase-1, Lodha Panache stands as a prominent residential de
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Pune
Lodha Park The Wholesome Spa...
Families are the fundamental building blocks of modern society. What
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Lifestyle
A Safe Haven - The Luxury Th...
In an ideal world, you would desire for all of the above and much more to lead a gratified life f
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Large Spaces – A Luxury In...
Lodha Evoq, is home to the ultimate luxury indulgence with the largest customizable bare-shell re
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Pune – a blend of heritage...
Since time immemorial, the growth and prosperity of a city are intricately intertwined with the q
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Pune
Live, Breathe, Exhale - Once...
In the daily rigmarole, we live but we forget to breathe. We work hard bu
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Belmondo Health Pune
A Simple Strategy For Your H...
Health Goals seem to be this generation’s greatest foe. With long work hours, lofty career goal
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Belmondo Health Pune
A Culinary Extravaganza at L...
Food fanatics like me are always on a look-out for experimenting and exploring new places that se
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Health Belmondo Pune
Health and Wellness Begins a...
Health and Wellness have taken the front seats today. The internet is flooded with tips and trick
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Belmondo Pune
Luxury Villas and Weekend Ho...
The COVID-19 pandemic has given a new lease of life to the second homes market. Prolonged travel
