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DIFFERENCE BETWEEN RELINQUISHMENT

DEED AND RELEASE DEED

Both relinquishment deed and release deeds may appear to be the same
however they have a subtle difference. Get to know the subtle but significant
differences and how it affects the process. So many people, the concept of the
‘deed of release’ and ‘deed of relinquishment’ is not only puzzling but
highly confusing. Most people assume that both deeds are the same. This is
however not exactly accurate.

Relinquishment deeds are legal documents that allow a person to give up his
or her legal right to property to another person with their consent. A deed of
release, also known as a deed of reconveyance, is a legal document used to
renounce one’s claims against a specific property. A release deed completely
releases the parties from their previous obligations. While there is no
discernible difference between the two, the context in which the terms are
used vary. However the essential purpose of the two (relinquishment deed and
release deed) is the same.

RELINQUISHMENT DEED
For instance, if a person dies without leaving a will and his property passes
to his legal heirs (his two sons). Now, one of the son, for personal reasons,
transfers his rights to the property to his brother. The transfer of rights is
referred to as a relinquishment deed. However, in the case of relinquishment,
the person receiving the deed must be interested in acquiring the property. In
addition, that person must give full consent to take over the entire share of
the property. Otherwise, the deed of relinquishment will become void and
cannot be legally enforceable. Also, it must be noted that a relinquishment
deed can only be executed towards a member of the family in most cases or a
co-owner of the property and not anyone else.

REQUIREMENTS OF A RELINQUISHMENT DEED

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A relinquishment deed is a legal document used to transfer a claim from one

person to another. It must be meticulously executed and registered as per
Section 17 of the Registration Act, 1908.

The deed must be drafted on a Rs. 100 stamp paper. It should then be
submitted before the sub-registrar within whose jurisdiction the property lies
along with the registration fees. Executing this deed also requires the
signature of two witnesses.

A relinquishment can be challenged on the same grounds on which a general

contract can be revoked. Fraud, undue influence, coercion, and
misrepresentation are all possibilities. It is critical that both parties consent
to the cancellation. Both parties mean the person who relinquishes and the
person in whose favor the deed is relinquished. Otherwise, the only way to
cancel the deed is to go to court.

RELEASE DEED
When it comes to a release deed, the deed can be enforced against anyone
who previously had a vested interest in the property, regardless of whether
they were coparceners or not. When a person applies for a loan from a bank,
the bank takes complete control of the homebuyer’s previously owned
property as collateral. When the loan is paid in full, the mortgage is returned
to the owner along with a release deed. Through the mortgage release deed,
the bank relinquishes temporary possession of the mortgage to its owner. As
a result, in a mortgage release deed, the parties involved do not have to be
relatives or coparceners.

Moreover know about relinquishment deed can only be used for inherited
properties and not for the release of services. An employment release deed,
for example, can be executed to release both the employer and the employee
from previous obligations. Or, in some cases, to establish the terms of the
employee’s severance package. The release deed can also be used to prevent
an employee from disclosing certain highly confidential company information
and/or from forming his own company using such confidential information.
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RELEASE DEED STAMP DUTY

As is true for all documents that enable transfer of right to a property, a

release deed must be registered with the sub-registrar’s office to have legal
sanction, after the payment of stamp duty and registration charges. As
transfer of property is regulated under state laws, states charge different
stamp duty rates on the release deed. Some states only charge a nominal
registration fee to register the document.

Release deed can be challenged by the legal heirs after the death of the person
who issued it. Married daughters are also legal heirs to the property and she
can claim the property any time during her father's lifetime or even after his
death.

A Registered Release Deed CANNOT be unilaterally revoked /cancelled.

However it can be revoked /cancelled mutually by both the participating
parties. 2. You may file a Civil Court Suit for recovery of your money,
PROVIDED you have relevant documentary evidences & witnesses, in support
of your claim.

CONCLUSION

In a nutshell, a relinquishment deed is a type of release deed that can be used

to renounce claims over inherited property to a co-owner(s) of the interstate’s
property. Relinquishment deeds transfer a person’s legal rights to a property
to someone else with their consent. In such cases, the two people must be
related. A release or re conveyance deed renounces one’s claims against a
specific property. In such cases, the two people do not have to be related.

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