18/09/2019
Introduction of Relinquishment Deed
Many times it happens that a person dies intestate (without leaving a will or testamentary will) in such cases the property of that person is inherited by his/her legal heir. Then it’s up to the heirs as what they want to do with the said property. If the heir’s come to the conclusion of separation of property, then anyone of the co-owner (who is not willing to keep the property) can relinquish his share in favour of the other owner. This process of transferring property from one owner approving the other is known as “Relinquishment of Property”.
Meaning of Relinquishment Deed
Relinquishment deed is a legal document/instrument where a legal heir gives up or releases his legal rights in an inherited parental property for another legal heir such as his mother, son, daughter, brother, sister, etc.
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.
Essentials Elements of Relinquishment Deed
Legal document: Relinquishment deed is a legal document. Through this legal document, an heir can transfer or release his legal right of the inherited property.
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.
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: Relinquishment deed falls under Section 17 of the Registration Act, 1908 and hence, a release of rights in the immovable property must be registered. The registration takes place in the office of the sub-registrar within whose jurisdiction the property is situated.
Consideration: A relinquishment deed can be done with or without any consideration.
Easy process: A relinquishment deed can be made and registered in few days, and this process is not expensive.
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.
Illustration: A died intestate leaving behind his three sons. A was the owner of a land which after his death was inherited by his three sons. Later, one of the son X shows his interest for not keeping any share in the said property for which he offered relinquishment. The relinquishment deed was made in favour of other two owners. The relinquishment deed transferred every right of X in the property to his brothers.
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.
A property can also be transferred to minors; such cases will be governed by the Indian Contract Act 1872.