• Relinquishment of share of inherited property

My late father owned a flat in Mumbai. There are three successors- two sons and a daughter. I am the eldest son.
In his will, my father gave me full ownership and usage rights to the flat. He however stipulated that in case of sale, only 2/3 of the sale proceeds would come to me. The balance 1/3 would be equally divided between my two siblings(ie 1/6 of sale value each). 
The flat is in my name and has been given on lease. There is no plan to sell it in the forseeable future. However, while doing inheritance planning for the nextgen, my siblings wish to relinquish their rights to 1/6 of sale value each without any consideration.
a) Is such a relinquishment of a future right legally feasible?
b) Is a Relinquishment Deed required to be executed?
c) Does it have to be registered to be binding for future generations?
d) Is there a standard template available for the draft deed?
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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13 Answers

1) there is no standard template for relinquishment deed

2) deed of relinquishment has to be stamped and registered

3) it is feasible to execute relinquishment deed

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Hi,

Such relinquishment is feasible and such deed should be executed and registered.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Hi,

the amount would be as per the value of the property.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

stamp duty for relinquishment deed would be dependent on market value of his share in property

2) although will mentions that you are absolute owner of flat in fact one sixth share has been given to your siblings in event of sale . As such you have 2/ 3rd share in flat

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

1. First of all you shall have to obtain grant of probate of the said will from the Court as otherwise a will is considered to have no value unless probated.

2.After obtaining probate of the will, you can get the said relinquishment deed registered by your sisters which will be perfectly lawful. The relinquishment deed is required to be registered.

3. If the will has not been registered and other beneficiaries have consented to relinquish their right, you can get the relinquishment deed registered without taking any reference to the will.

4. It will be mentioned in the relinquishment deed that the deed will be binding on the successors of the parties signing the deed.

5. Engage a local lawyer to draft your said relinquishment deed since all deeds are unique in nature and vary depending on the circumstances and requirements.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

1. If the sisters take money fro relinquishment for their rights on the property of their father, then it will become a sale deed executed and registered after taking consideration.

2. The stamp duty will be charged basing on the amount paid for relinquishing their rights. It will be prudent on your part not to show that money has been paid for relinquishing their rights.

3. You can gift the said amount to them by executing affidavits to that affect for which you won't have to pay the high amount of stamp duty charged for selling properties.

4. No I.Tax shall have to be paid for inheriting properties.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

They cannot relinquish their right to 1/6 share in the sale consideration, to their Legal Heirs. This transfer is impermissible and cannot be given effect to, not even under a relinquishment deed.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

its better to have the relinquishment deed made and registered it will save lot of dispute which can rise in future

for stamp duty pls consult the local registration office

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Relinquishment deed can be executed for the same. The same has to be registered.

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

Your siblings need to execute a registered release deed relinquishing their rights in the property in your favor.

This release deed will confer clear and marketable title to you and this step will ensure your own heirs to sail smoothly on this issue.

T Kalaiselvan
Advocate, Vellore
78073 Answers
1543 Consultations

5.0 on 5.0

The amount towards release deed will depend on what you both agreed.

The stamp duty will be borne by the beneficiary.

T Kalaiselvan
Advocate, Vellore
78073 Answers
1543 Consultations

5.0 on 5.0

A. yes such a relinquishment can be made and show the same as a future gift.

B. Yes

C. Registering the same will be beneficial for future purposes.

D. Please contact a local lawyer who may draft the same for you.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1) Relinquish agreement is not for consideration its for free of consideration that one party or co owner transfer his share to another co owner who have inherited property from their parents. And there is no such income tax or stamp duty for just transfer of ownership.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

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