Release deed is the legal document that removes previous claim to a lien or an asset. You can use this to transfer your rights in a particular property without exchange of money or any consideration. It needs to be signed by both the parties, stamped and registered. It needs to be registered under Section 17 of the Registration Act, 1907. Legal conclave will be the party that will take the release deed and sign and get the process done.
Meaning of Release Deed
By a deed of release, a person actually renounces the claim over a property. A release deed is a document, duly registered under The Indian Registrations Act, 1902, which dismisses a lien or other claim on a property over which the person making a release deed is holding a title. As per Section 17 of the Registration Act 1908, registration of a release deed is mandatory. A deed of release can be executed within the family.
A release deed is usually confused with the Gift deed; they are different in nature even though, the legal broad lines are similar. This form of transfer of property is irrevocable, and the most essential element that it is usually without any consideration. Simply, a deed of release does not involve any monetary exchange
The person who executes or makes the Release Deed is known as "Releasor" and the person in whose favour it is executed is known as "Releasee." A deed of release is usually created when once a mortgage or other type of debt, previously secured against the asset, which has been paid in fully and there are no dues remaining. A deed of release in context of mortgage does not create a new or fresh title; it simply restores the suspended rights of the owner. When both partners mutually purchase a property and at a point of time, one of the partner wants to release his share from the property then in that case Release Deed executed. Hence, renouncing a right in the property, to set free all the claims.
Procedure to give effect to the Release Deed;
- All the legal heirs of the deceased father whose property has to released/ or set free can come to an understanding and execute a Family Settlement Deed, which is a quick method.
- A release deed does not need to be notarized; simultaneously it requires only two witnesses have to attest it.
- If family settlement deed is not a viable option then, all the legal heirs can execute a Release/Relinquishment Deed releasing their individual rights in favor of their mother and the deed has to be duly stamped and registered in the office of the Sub-Registrar of the jurisdiction in which the property is situated,
