Q.786 Relinquish Property

Procedure & Cost to Relinquish in

India

Question: D/s I read a post on the NRI information site regarding and answer to a query regarding relinquishing rights to proprerty . We have a related question although not involving any NRI. We are some co-holders in a residential property in a District HQ of Gujarat and have become such holders by virtue of succession after the death of our aunt(mausi) being unmarried,she having acquired the property through purchase and development,i.e. not an inherited one. Now we (some co-holders)want to relinquish/forgo/disown or disclaim our right in the property rendering the property in the names of remaining co -holders. Q.! Is there a standard form of such Relinquish Deed or a simple Affidavit before a Notary to the effect will serve the purpose? Q.2. What are the procedures /formalities to be done for the purpose and what is the cost involved roughly? As the remaining co-holders being two very old-age sisters (above 80s)of the deceased are rightly entitled to the title of the property and not having any immediate family,both being unmarried ,deserve a timely help of information on a humanitarian ground so as to render them not becoming prey to local agents who misguide and charge heavily. Can I expect to have a swift response on my eMail Pl.? Thanx in anticipation, Jaynt Pandya Answer: Regarding your two questions: 1. A link to a sample relinquishment/release document on this website is available by clicking HERE. There is no standard form that I am aware of. Each state would have some form of wording that a local lawyer can prepare. Any document that concerns property in India should be drafted by a qualified lawyer of your choosing. Errors and omissions can make a document invalid and it is best to let a professional lawyer handle legal forms, affidavits etc. 2. Regarding procedure of relinquishment of property share: o Get a qualified professional to prepare the papers o Relinquishment deed must be signed by both parties o Relinquishment deed once prepared and signed must also be registered at the office of the Registrar in whose jurisdiction the property in question is located. o Stamp duty that is applicable in the State/area where the property is located must be paid. The stamp duty will apply not to the full value of the property but only to the portion of the property that is being relinquished

Cost to Relinquish property to a co-

owner in India

The cost involved in such cases would depend on: • The fee your lawyer charges for preparing the property relinquishment deed • Stamp duty applicable in the area where property is located. Regarding stamp duty in India, please be aware that the value is determined by market values set by the government as applicable according to published circle rates etc. Even though no money is being received to relinquish share in a property, the fair market valuation of the share being relinquished will be used to calculate stamp duty.

Points for the benefit of other readers

of this page on ‘Relinquishment of

Property in India’

1. Relinquishment of property can only be done between co-owners of the same property. 2. Relinquishment of a property in India can be made for consideration and without consideration. 3. If a person tries to relinquish property in favor of a person who is not already a co- owner of the property, then such an act is treated as a sale/conveyance of property. 4. If there are several co-owners of a property and a person wishes to relinquish his/her share in favor one particular co-owner. Then this is not considered to be valid and may be considered as a gift/sale/conveyance of the co-owner’s share. Kindly consult appropriate professionals when drafting legal agreements of any sort. Legal forms, rules etc. change periodically and local lawyers are the best source of information on property matters and legal agreements.