Jun 22, 2023Investments

Revoking Relinquishment Deeds

by Godrej Properties Limited

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What is a Relinquishment Deed?

A relinquishment deed is a legal document for transferring property rights from one individual to another. The process of relinquishing one’s rights to jointly inherited property begins by signing an affidavit for relinquishment of property rights. Then, a relinquishment deed for joint property in a standard format is executed. Below, we understand the meaning of a relinquishment deed and whether it can be challenged.

Points to Remember When Drafting a Relinquishment Deed

When drafting a relinquishment deed, remember to
 

  • Identify parties involved
  • Describe the property in detail
  • Ensure willingness to relinquish rights
  • Specify payment details, if any
  • Comply with legal requirements
  • Arrange for witness signatures
  • Include the signing date
  • Specify governing law
  • Check for registration requirements
  • Seek legal advice when needed

Relinquishment Deeds Format

A relinquishment deed format is a structured template for creating the legal document. It should include:
 

  • A clear title specifying it as a "Relinquishment Deed."
  • Identification of the involved parties with names and addresses.
  • Detailed description of the property or asset being relinquished.
  • A statement indicating voluntary relinquishment.
  • Provisions for consideration/payment, if applicable.
  • Adherence to legal requirements and rules.
  • Witness signatures and notarization, if necessary.
  • Date of execution and signatures of all parties.
  • Specification of the governing law.
  • Consideration of registration with relevant authorities.

Utilising this format ensures a comprehensive and legally compliant relinquishment deed.
 

Relinquishment Deed Benefits

A relinquishment deed streamlines property transfers and facilitates the equitable distribution of assets among legal heirs. It ensures clarity in property ownership, simplifies the process without a will, and expands property rights to additional legal heirs when executed.
 

The Validity of a Relinquishment Deed

According to the Supreme Court of India, a release deed for a joint property rights transfer must comply with specific rules to be considered legal. It must be written on stamp paper, signed and witnessed, and registered with the sub registrar’s office, making it a legal, binding instrument that cannot be revoked.
 

Hence, before signing a release deed, consult a lawyer and consider all its implications. All parties to the deed must review it to ensure that it is legal and fair to all parties. However, a release deed can be challenged within the first three years of registration under exceptional circumstances.
 

Revoking a Relinquishment Deed

This is a complex legal process and requires proper legal consultation. Here are a few points to consider when revoking a release deed:
 

Legal Advice

Consult a qualified lawyer specialising in property law, who can provide proper legal advice regarding the specific legal requirements and options available for revoking a relinquishment deed.

Terms and Conditions

The relinquishment deed itself may have specific provisions that disallow or allow revocation and the special circumstances for doing so. Have the deed carefully reviewed by a legal expert.

Mutual Agreement

Revocation of the relinquishment deed is permitted only if all the parties who originally signed it, mutually agree to revoke it now. Similarly, all the parties must also mutually agree to execute a fresh deed of revocation, which clearly states the intention to cancel the previous relinquishment deed.

Fraud or Undue Force

It is possible that the co-heir surrendering his rights to the jointly inherited property was unduly forced or fraudulently manipulated into doing so. In this case, if the fraud can be proved, then there are legal grounds for challenging the relinquishment deed and seeking revocation in court.

Court Intervention

It may become necessary to seek the court’s decision in cases where all parties do not agree to revoke a relinquishment deed. In such circumstances, the court will consider the circumstances, evidence, and applicable laws to decide.

Finally, revoking a relinquishment deed is a legal process that requires the mutual agreement of all parties. Seek proper legal counsel before doing so.
 

Difference Between Relinquishment Deeds and Gift Deeds

AspectRelinquishment DeedGift Deed
PurposeTransfer ownership rights when a co-owner relinquishes their shareVoluntarily transfer ownership of a property or asset as a gift
ConsiderationTypically, it does not involve consideration or paymentIt can include consideration or payment, but it can also be a voluntary transfer
IrrevocabilityCan be revoked or cancelled within a certain period, subject to legal provisionsGenerally irrevocable once the gift is made unless specific legal conditions allow revocation
Legal DocumentationRequires legal documentation and compliance with relevant lawsRequires legal documentation and registration to establish the transfer of ownership
Clarification of OwnershipHelps in clarifying and transferring property rights among co-owners or heirsFacilitates the lawful transfer of property or assets as a gift from one person to another


Frequently Asked Questions

1. When can I challenge a relinquishment deed?

Ans: It is recommended to challenge a relinquishment deed within the first three years of registering it.
 

2. What if one of the parties disagrees with revoking a relinquishment?

Ans: In such a scenario, the case is brought before the court for further investigation into the events which caused the deed to be challenged.
 

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