What Is a Release Deed (Relinquishment Deed)
When one co-owner wants to give up their share in a property to another co-owner, the document used is a release deed, also called a relinquishment deed. It is common in families, for example when siblings settle an inherited property. Here is a simple guide to what it is, how it works, and the stamp duty.
Quick answer
- A release deed transfers one co-owner's share to another co-owner.
- It is usually done without money, out of family arrangement or affection.
- Between co-owners it can attract a very low, fixed stamp duty in some states.
- It must be registered to be legally valid.
What is a release deed
A release or relinquishment deed is a legal document in which an existing co-owner gives up their share in a jointly owned property in favour of another co-owner. It applies wherever a property has more than one owner, whether or not they are related. The most common use is within families, such as heirs settling an inherited house so one person holds the full title.
How it works
All co-owners must agree. The releasing co-owner signs over their share to the remaining co-owner, usually without any sale price. The deed is drafted, stamped, and then registered at the sub-registrar's office. Once registered, the released share legally passes to the other co-owner, and the records are updated.
Stamp duty on a release deed
| Case | Stamp duty |
|---|---|
| Between existing co-owners (family) | Often low or a small fixed amount, varies by state |
| Delhi, among family | Around 0.5% of the share value |
| Maharashtra, family | A fixed amount up to a few percent, by relationship |
| Non-family / unrelated | Usually the full rate, around 5% of market value |
The big advantage is that a release deed among family co-owners is usually far cheaper than a normal sale or transfer. Rates vary by state, so check your local stamp department. Registration is mandatory under the Registration Act; an unregistered release deed has no legal validity.
Release deed vs gift deed vs will
- Release deed: a co-owner gives up their share to another co-owner, usually now and without money.
- Gift deed: an owner gifts property to anyone, not only a co-owner, taking effect now.
- Will: passes property after the owner's death, and can be changed while alive.
Choose a release deed when co-owners are settling shares among themselves. See our gift deed and property inheritance guides for the alternatives.
A common example
A father passes away leaving a house to his three children as equal co-owners. Two of them want the third, who lives in the house, to hold the full title. Instead of a sale, the two sign a release deed giving up their shares to the third. Because they are all existing co-owners and family, the stamp duty is low in most states, far less than a normal transfer. The deed is registered, the records are updated, and the third child becomes the sole owner cleanly. This is why release deeds are so common in family settlements of inherited property.
Points to check before signing
- Are all parties existing co-owners of the same property?
- Is the share being released clearly described, whole or part?
- What is the stamp duty in your state for a family release?
- Is the deed being registered at the sub-registrar's office?
- Have you taken legal advice, since a registered release is hard to reverse?
FAQ
What is a release deed?
A legal document by which one co-owner transfers their share in a jointly owned property to another co-owner.
Is a release deed the same as a relinquishment deed?
Yes. The two terms are used for the same document, releasing a co-owner's share to another co-owner.
Does a release deed need money to change hands?
Usually not. It is commonly done without a sale price, out of family arrangement or affection.
What is the stamp duty on a release deed?
Among family co-owners it is often low or a small fixed amount, varying by state. For unrelated parties it is usually the full rate.
Does a release deed have to be registered?
Yes. Registration at the sub-registrar's office is mandatory. An unregistered release deed has no legal validity.
Who can execute a release deed?
An existing co-owner of the property, releasing their share to another co-owner, with all co-owners agreeing.
Can a release deed be revoked?
Once registered and acted upon, it is generally final, like other registered transfers. Get legal advice before signing.
When should I use a release deed instead of a gift deed?
Use a release deed when co-owners are settling shares among themselves. A gift deed suits transferring to someone who is not a co-owner.
Is a release deed useful for inherited property?
Yes. Heirs often use it so one person holds the full title of an inherited property, at low family stamp duty.
Can a release deed be for part of a share?
Yes. A co-owner can release all or part of their share, as stated clearly in the deed.
A release deed is the simple, low-cost way for co-owners, especially family, to settle who holds a property. Draft it clearly, register it, and check your state's stamp duty before you sign.
