Release deed can be executed duly stamped and registered
Release deed without consideration, or gift deed
As part of settlement agreement for divorce, a lump sum of 25 L are to be given to the wife (12.5 L already given at the time of first motion which was held in July 2019, and the remaining amount will be given at the time of second motion). Before the second motion the wife will execute a release deed in favor of the husband as per the divorce settlement (for the jointly held property mortgaged to a govt bank for which a joint loan is going on) However, for this release deed there is no consideration amount specified, because the 25 L is a holistic payment that includes everything. No amount is separately given for release deed. Now should there be a release deed without consideration (which attracts no stamp duty and is done on a simple Rs 100 stamp paper), or should there be a gift deed which will have 6%+1% stamp duty? It is to be noted that the divorce agreement and request letter to bank mention release deed and not gift deed. Further, it is to be noted that the higher authority of the bank has finally given a go-ahead to the real estate hub for a release deed. We are talking about release deed, NOT about relinquishment deed applicable for inherited property.
Asked 4 years ago in Property Law
Religion: Hindu
11 Answers
Registering the documents relating to the transfer, sale, lease or any other form of disposal of a property is compulsory by law under section 17of The Registration Act, 1908. So, release deed also needs to be duly stamped and registered at sub register office. it cannot be done on 100 rupees stamp paper without payment of any stamp duty.
Stamp duty will be levied on the registration of the release date on the basis of the circle rate of the property, even if no consideration amount is mentioned in the said release deed.
Firstly release and relinquishment are one and the same
Both are synonyms and bear the same meaning
Secondly release is a type of transfer under the transfer of property act
Since a share in an immovable property is being released whose value is obviously more than Rs 100/- the such a release deed is compulsorily required to be registered
A mere release deed on a simple 100 Rs stamp paper will not confer any title on you in respect of the share being released
So if you want to obtain absolute title over the property it is advisable to have a registered release deed in your favour
If you dont take a registered release deed from your wife then in future on sale of this property you will face problems and will find it difficult to sell since an unregistered release deed will confer a defective title on you
So its advisable to mention the settlement amount in the release deed (which also Includes the value of the share being released) and have the release deed stamped and registered
I reckon under the Delhi stamp laws there is some concession given in stamp duty when property is transferred by release between specified relatives
The lender bank has no business to dictate to you which document you must execute since it is your title for which you have to take steps. Once loan is repaid fully to the bank, the bank will release original documents to you and also the release deed on 100 Rs stamp paper. The latter in my opinion does not confer any ownership title on you for the share being released unless the release deed is registered
- A Release Deed is a legal document that removes a previous claim on an asset/property.
- As per Registration Act, it must be registered in the office of the sub-registrar within whose jurisdiction the property is situated.
- Further, A release deed is quite different from a gift deed, though the legal implications are the same
- The stamp duty depends upon various factors in this case. It may vary from Rs.100/- to 3% of the Circle Rate of the property.
1. Yes there should be release deed in favour of husband and that too without consideration as per divorce agreement.
2. Gift deed will be not applicable in this case because she is co-owner of property and she is releasing her share in favour of other co-owner that is you.
It is not a co-shared property, it is a jointly owned proeprty, hence the release deed may not be applicable to this situation.
The release deed is not the correct option and it may be invalid
A release deed can be executed by the co-sharer if the property had been inherited by the successors in interest.
Moreover any transaction concerned with the immovable property shall be valid only if the execution of the same is by a registered deed.
The bank is not concerned about the future problems that you may face in this after you have discharged the entire loan amount and are preparing to sell the property.
A registered gift deed is the correct manner and option to transfer the share of her property to your name.
You may consult a knowledgeable advocate in the local and proceed on the advises received.
See it has to be a gift deed after NOC from the bank, you can ask bank to transfer loan onto your single name.
See unregistered release deed shall be not valid for future claims she can still claim her share.
Even release deed without adequate stamp duty and registration will be invalid. It will be stamped at a value of the flat for which the said release in share is done.
1. Execute properly drafted "Release Deed" with strategic clauses and objectives mentioning court case settlement and no-consideration. ALSO take Registered Power of Attorney from divorced Wife, for other documentary formalities, mutation /transfer which would be required for all futuristic legal purposes such as Sale /Transfer /Gift /Donate /Mortgage /whatever....
2. The above Release Deed "MUST" duly Stamp Duty paid (500/-) and Registered (1000/-) without which the release deed is legally not enforceable.
3. Submit copy of release deed in court case matter and plead that it may be taken on record.
4. AFTER point no. 3, apply for certified copy of release deed (which is on court record) and relevant roznama /noting /order, for future legal reference and to avoid any further disputes.
release deed will attract stamp duty for transferring.
Release deed with or without consideration attract same stamp duty. Release deed and relinquishment both are same execute to transfer share in co owner.
Release deed is irrevocable, gift deed not.
