What Is a Relinquishment Deed?

Property inherited from parents or ancestors is often shared among multiple legal heirs. When one legal heir wishes to give up or release their share in such inherited property in favour of another heir, the law provides a document called a Relinquishment Deed.

Relinquishment (release) is one of the most common forms of transferring share in family property, especially when heirs want settlement without sale or dispute.
This blog explains what a relinquishment deed is, its purpose, requirements, and legal consequences.

🔹 1. Meaning of Relinquishment Deed

A Relinquishment Deed is a legal document through which a legal heir voluntarily releases or gives up his/her share in an inherited property in favour of another co-heir.

It is used only for inherited property, not for self-acquired property.

✔ Purpose:

• To transfer one heir’s share to another heir

• To avoid disputes among siblings

• To settle family arrangements

• To consolidate ownership

Once executed, the heir who relinquishes the share loses all rights permanently.

🔹 2. When Is a Relinquishment Deed Used?

A relinquishment deed is commonly used when:

• A parent dies leaving property to multiple heirs

• One or more siblings do not want their share

• Property needs to be transferred into a single name

• Family settlement is being done

• Mutation in revenue records must be updated

Example:
If a father dies, leaving property to his 3 children, any one child can relinquish his share in favour of the other two.

🔹 3. Who Can Execute a Relinquishment Deed?

Only legal heirs who have a share by:

✔ Inheritance
✔ Succession
✔ Will (in some cases after probate)

A non-heir cannot relinquish property they do not legally own.

🔹 4. In Whose Favour Can a Share Be Relinquished?

A relinquishment deed can be executed only in favour of another co-owner / legal heir.

✔ Allowed:

• Brother to sister

• Daughter to mother

• Son to brother

• Sibling to sibling

• Heir to heir

❌ Not Allowed:

You cannot relinquish in favour of a stranger or third party.
In that case, sale deed or gift deed is needed.

🔹 5. Is a Relinquishment Deed the Same as a Gift Deed?

No.

• Relinquishment Deed = only among legal heirs for inherited property

• Gift Deed = can be executed in favour of anyone (heir or not)

If the beneficiary is not a co-heir → use a gift deed or sale deed, not relinquishment.

🔹 6. Registration of Relinquishment Deed — Is It Mandatory?

Yes, it must be:

✔ Written
✔ Signed by all parties
✔ Stamped as per state law
✔ Registered at the Sub-Registrar office

Registration is compulsory because the transfer affects immovable property rights.

Without registration, a relinquishment deed has no legal effect.

🔹 7. Documents Required for Relinquishment

• Death certificate of the original owner

• Identity proofs of all heirs

• Original property documents

• Legal heir certificate (if required)

• Draft relinquishment deed

• Passport-sized photos

• Witnesses for registration

🔹 8. Stamp Duty for Relinquishment Deed

Stamp duty varies from state to state.

In many states:

• Relinquishment between family members = lower stamp duty

• Relinquishment between non-family heirs = slightly higher duty

However, generally cheaper compared to sale deeds.

🔹 9. Legal Effect of a Relinquishment Deed

Once executed and registered:

✔ The relinquishing heir permanently loses all rights in the property
✔ The beneficiary heir(s) become full owners of that share
✔ The property can be mutated in their names
✔ The transaction cannot be reversed except by executing another transfer deed

It is legally binding and cannot be cancelled unilaterally.

🔹 10. Common Mistakes People Make

❌ Not registering the deed

→ Makes it invalid.

❌ Trying to relinquish in favour of non-family members

→ Not permitted; must use a sale/gift deed.

❌ Relinquishing without understanding tax impact

→ Capital gains may arise if not handled properly.

❌ Using vague property descriptions

→ Causes future disputes.

❌ Assuming relinquishment can be taken back

→ It is irrevocable once registered.

⭐ Conclusion

A relinquishment deed is a powerful and simple legal tool that helps families transfer shares smoothly in inherited property.
It is valid only among legal heirs and must be registered to take effect.
With proper documentation and registration, it helps avoid disputes and ensures clear ownership.