How to give up a share in property in India?

There are property inheritance laws under which one can claim his rightful share in a property. Property disputes commonly arise over unfairness in property distribution through wills. At the same time, an individual may want to give up his share in a property, which can be a complex legal process. 

Property transfer deeds are legal instruments that allow one to relinquish his share of property. There are various deeds applicable in case one wants to give up his ownership rights to co-owners, transfer property to legal heirs or gift property to family members. 

How to transfer a property to a legal heir?

Transferring property to a legal heir involves a legal procedure. One must first determine the legal heirs, who have the right to the property based on succession laws, such as the Hindu Succession Act of 1956 and the Indian Succession Act of 1925. 

After the legal heirs are identified, they must apply for a legal heir certificate from the local revenue authorities or a succession certificate from the court. This is an important document that proves the rightful heirs and their entitlement to the person’s property. 

In the next step, a transfer deed, such as a relinquishment or gift deed, should be prepared and executed to transfer ownership of the property to the legal heir.

How to give up property share legally?

Through relinquishment deed

According to the law, a relinquishment deed must be obtained for the purpose of giving up one’s share in a property. This legal document allows one to transfer ownership rights from one party to another. One can voluntarily give up his share in the property, usually in favour of another co-owner or beneficiary. 

To ensure the validity and legality of the transfer, the relinquishment deed should be carefully prepared. This involves drafting the document on stamp paper, getting signatures from all the parties and completing the registration process at the relevant sub-registrar’s office.

Through sale deed

One can complete the property transfer through a sale deed when giving up his property share. In this case, the seller transfers property ownership to the property buyer in exchange for monetary consideration. The deed is an important legal document that serves as proof of the transaction and mentions the terms and conditions of the sale.

Through release deed

Another method of transferring property ownership in India is executing a release deed. This involves voluntarily transferring one’s share of property to another co-owner or third party.

Through gift deed

One can transfer property ownership from one person to another as a gift without any monetary exchange by executing a gift deed. 

Advantages and disadvantages of sale deed, relinquishment deed, release deed, and gift deed

Important things to note when giving up share in property

• According to the Registration Act of 1908, relinquishment comes under Section 17, which means it must be compulsorily registered at a sub-registrar’s office.
• Unregistered relinquishment deed does not serve as legal proof of relinquishment.
• Relinquishment refers to transfer and not a gift. There are no tax benefits. 
• One cannot relinquish a property in favour of a non-co-owner. 
• In case one wants to transfer his property to someone else, it would be considered as a gift deed and stamp duty charges will be applicable. 

Housing.com News Viewpoint

When planning to give up your share in a property, it is important to check all the legal considerations and follow the relevant procedure. Moreover, establishing clear communication with co-owners or beneficiaries and executing proper legal documentation, such as relinquishment and gift deeds, while considering financial obligations is important. 

In addition, one can approach a legal professional or an expert in property laws to ensure a smooth transfer of property ownership.

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