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John (Business)     16 December 2013

Release deed & Relinquishment deed - are they same?

Dear Lawyers,

 

What is the difference between Release deed and Relinquishment deed?

 

Are they same or do they have some difference? Some people say it is same. But there seems to be some difference between them as per the descripttion given here:

https://www.propertyvakil.com/Agreement-to-Sell2.php

 

Also, if they are different which one is cost effective to execute in terms of Stamp duty and registration. (Note: The deed will be executed among family/relatives)

 

Please clarify.

 

Thanks and Regards, John



Learning

 4 Replies

Dr J C Vashista (Advocate)     16 December 2013

By and large both the terminologies are synonymous and same stamp duty is paid for registeration of the deed

Mohammed Sajid Khan (Advocate)     16 December 2013

In addition to above, they are also called quit deed.

John (Business)     16 December 2013

Thanks Dr. J.C. Vash*ta and M.S. Khan for your inputs. But why are there two deeds of the same nature. Is there some technical difference between them or are they exactly the same?

 

Are they 2 different deeds as per Indian laws?

 

Please clarify.

 

Thanks and Regards,

John

anitha Gutti (Advocate)     16 December 2013

John Sir, 

When you go through the definitions given in your quoted website, it is clear that both has been defined with similar meaning but with different wordings.  Meaning for both deeds exhibited same, ie., giving up /surrendering rights...

As Dr. J.C. Vashista sir said, both terms are synonymous. Both Deeds be executed for purpose of relinquishing their right of claim against other, in absence of which, could be claim against such person

Release deed is giving up claim or right or title by one or more persons in favour of another or others. 

In the case of Release, the person in whose favour the release is made usually has a pre-existing interest in the property and qualifies for release on that basis

Release is used in cases where there is no requirement of a conveyance or a transfer of property, but the transaction involves relinquishment of a right or a claim

Our Expert Ravinder Sir already discussed this issue, his opinion reproduced below for your reference and issues on  Stamp Duty 

‘’ Point-A—Normally relinquishment in other cases will be 1% of the market value of the relinquished property. I cannot say exactly, because it differs from state to state.

Stamp duty will be charged on the property relinquished and not on the remaining property.

How is the Stamp Duty to be calculated ??Is there any formula for it ?? Reading of the Stamp Duty Act indicates that the stamp duty is payable on value of the area as per the Circle Rate. Since this Office Room is a part of the multi-story building, how is the Stamp Duty to be calculated ? Will it be on the market value of the share of my son ???

There are two types of market value (i) Open market value, this is not concerned with the market value of government rate. (ii) Govt rate, which will be fixed by the Govt and will be increased from time to time according to the development of the area. All the transactions are done according to the Govt rate only, they do not recognize or believe open market value. There will be a fixed format for Open land (before layout) calculated in Acres, Plots (after layout) calculated in Sq yds/sq mts, Flats, calculated in sq feet area.

Q.Secondly, it is transfer from son to father without any consideration. Hence ipso facto there is no sale involved.

A. Relinquishment is conveyance and right in the property will be transfered, it is equivalent to sale, the registration charges are 1% of the market value.

Hope, given information cleared your doubts......

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