The Deed of Release: Meaning, Types, Documentation, Stamp Duty & Registration Charges in India

A deed of release plays a vital role in ensuring smooth and dispute-free property transfers. Imagine peacefully settling ownership; this document allows it to happen. It draws attention for its simplicity yet immense legal power, allowing one party to give up all rights to another. By building interest through transparency and legal assurance, it sparks a desire for secure ownership. Taking action by properly registering the deed safeguards both parties, ensuring lasting confidence in property dealings.

What is a Release Deed?

A release deed is a legal document used in the transfer of property rights. It is typically executed when one party (the releasor) decides to relinquish their rights in a piece of property to another party (the releasee). This deed is crucial in scenarios where multiple parties hold an interest in a property, and one wishes to give up their share or rights, effectively transferring them to another co-owner or a specified individual.

The release deed is commonly used in family and inheritance scenarios, where a member may choose to forgo their share in favour of another family member. This instrument is different from a sale deed as it usually involves a transfer without monetary consideration, particularly among family members.

Know The Different Types of Release Deeds, Their Applications and Their Implications

Release deeds can be categorised into different types, each serving specific purposes in property transactions. Understanding these types is crucial for anyone involved in property dealings or estate management. Here's a detailed look at each type:

Type	Purpose	Application
Full Release Deed	To completely relinquish ownership or rights in a property release deed	Used when a party fully transfers all rights to another, often in a sale or settlement agreement
Partial Release Deed	To release only a portion of property rights	Applied in cases of co-owned property or the release of a mortgage deed involving the partial release of property
Conditional Release Deed	Rights are released only if specific conditions are met	Used in situations where release depends on the performance of conditions or future events
Release Deed Among Family Members	To transfer rights within a family without monetary exchange	Commonly used in inheritance settlements, gift transfers, or family property adjustments
Release Deed Without Consideration	Rights are relinquished without any monetary compensation	Often used in amicable settlements, gifts, or inheritance adjustments within family or close relations

The Implications of a Release Deed

The execution of a release deed indeed has substantial legal ramifications that each of the parties involved must be aware of. These implications include:

• Transfer of Rights: A release deed transfers the rights of property, either wholly or partly, from the releasor to the releasee.
• Tax Implications: Stamp duty, registration fees, and potential capital gains tax apply; there may be an exemption for family transfers.
• Legal Binding: When executed, stamped, and registered, it becomes legally binding and cannot be easily challenged in court.

Release Deed in Blood Relation

In cases involving blood relations, the release deed is a preferred legal instrument for the transfer of property rights within a family. This approach is often chosen due to its specific benefits:

• Reduced Stamp Duty: Many Indian states offer significant concessions on the release deed stamp duty for release deeds executed between blood relatives. This reduction in stamp duty makes it a cost-effective option for transferring property within families.
• Simplified Process: The process for executing a release deed in blood relations is generally more straightforward compared to standard property transfers. The legal requirements are often less stringent, reflecting the trust and close relationship between the parties involved.

Release Deed Among Family Members

Release deeds are also commonly used among wider family members, beyond immediate blood relations, for property succession or settlement:

• Estate Planning: These deeds are often used in estate planning to distribute property among heirs in a manner that may be more harmonious and agreeable than other methods.
• Legal Recognition: The deed provides clear legal recognition of the transfer, safeguarding the interests of all parties involved. It helps avoid disputes among family members over property rights in the future.

Release Deed Sample Format

A standard format for a release deed typically includes:

• Details of the Parties: Names, addresses, and identification details of both the releasor (the party releasing the rights) and the releasee (the party receiving the rights).
• Property Description: A thorough description of the property, including its location, size, boundaries, and any other relevant characteristics.
• Terms and Conditions: Any specific terms or conditions related to the release of the property should be clearly stated.
• Signatures and Witnesses: The deed should include the legal signatures of both parties, and where required, signatures of witnesses to the transaction.

Here’s a release deed draft sample that you can use as a template

This Deed of Release is made and executed on this _ day of , 20, at .
BY
[Name of Releasor], aged about years, residing at ____ (hereinafter referred to as the Releasor, which expression shall, unless repugnant to the context, include his/her heirs, executors, administrators, and assigns)
IN FAVOUR OF
[Name of Releasee], aged about _ years, residing at ____ (hereinafter referred to as the Releasee, which expression shall, unless repugnant to the context, include his/her heirs, executors, administrators, and assigns).
WHEREAS
The Releasor and Releasee are joint owners of the property described below.The Releasor has agreed to release and relinquish his/her share, right, title, and interest in the said property in favour of the Releasee out of natural love and affection (or other consideration, if applicable).
NOW THIS DEED WITNESSETH AS FOLLOWS:
1.The Releasor hereby releases, assigns, and relinquishes all his/her rights, title, and interest in the property described below in favour of the Releasee, who shall henceforth be the absolute owner.
2.The Releasor declares that he/she has no claim whatsoever in the said property.
3.The Releasee accepts the release and shall henceforth enjoy the property without any interference from the Releasor or any person claiming under him/her.
Schedule of Property:
(Provide complete details — survey number, address, boundaries, measurements, etc.)
IN WITNESS WHEREOF, the Releasor has hereunto set his/her hand on the day, month, and year first above written.
Witnesses:
___ (Signature, Name & Address)
___ (Signature, Name & Address)
Signature of Releasor: ___
Signature of Releasee: ___

Documents Required for the Release Deed

The essential documents for executing a release deed include:

• Original Property Documents: The title deed and any previous sale deeds to establish the chain of ownership.
• Identification Proof: Valid government-issued identification, like PAN cards or Aadhaar cards, for all parties involved.
• No Objection Certificate (NOC): If required, an NOC from relevant authorities, such as housing societies or local government bodies, might be necessary.

Registration Process of a Release Deed

The release deed registration must follow the official government process to ensure legal validity. Below are the key steps involved in completing the release deed procedure:

• Step 1: Verify property details and the relationship between parties
• Step 2: Draft the release deed on non-judicial/e-stamp paper with full property details
• Step 3: Pay applicable stamp duty and registration fees (online or challan)
• Step 4: Book a slot (if required) and visit the Sub-Registrar’s Office with all documents
• Step 5: Complete biometric verification and registration formalities
• Step 6: Collect or download the registered copy of the release deed

Stamp Duty & Registration Charges

Stamp duty and registration fees for release deeds differ across Indian states. The rates also vary depending on whether the transfer is within a family or to a non-family member. Here is the detailed overview of the stamp duty and registration charges:

State	Family Transfer	Non-Family Transfer
Karnataka [1]	₹1,000 stamp duty + ₹500 registration fee	5% stamp duty + 1% registration fee
Maharashtra [2]	₹200 stamp duty for family members	5% stamp duty + 1% registration fee
Tamil Nadu [3]	1% stamp duty + 1% registration fee	7% stamp duty + 1% registration fee
Telangana [4]	₹1,000 stamp duty + 0.5% registration fee	4% stamp duty + 0.5% registration fee
Andhra Pradesh [5]	1% stamp duty + 0.5% registration fee	5% stamp duty + 1% registration fee
Delhi [6]	1% stamp duty + ₹100 registration fee	3% stamp duty + 1% registration fee
Kerala [7]	1% stamp duty + 1% registration fee	8% stamp duty + 2% registration fee

(Note: Rates are indicative and subject to change as per state government notifications.)

How Can NoBroker Help?

NoBroker, with its comprehensive legal services, offers invaluable assistance in navigating the complexities of release deed transactions. Their team of experienced legal professionals provides expert guidance on release deeds, ensuring that all documents are legally compliant and tailored to individual needs. Check out NoBroker legal services for comprehensive legal advice when it comes to real estate transactions.

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