Difference Between Relinquishment Deed and Release Deed 

November 10, 2022 . Home Buyer's Guide . 10 min read
Relinquishment deed

The concepts of “release deed” and “relinquishment deed” are not only incomprehensible to many people, but they also cause a great deal of confusion. The vast majority of individuals are under the impression that the two acts are equivalent to one another. However, this is not completely correct.  

There are certain minor distinctions that are important to note. In this article, we will go through the primary distinctions that exist between the two. 

What is a Relinquishment Deed? 

The document known as a relinquishment deed is a piece of legal drafting that is signed by co-owners of property who have acquired ownership of the property via inheritance. A “releasor” executes the deed, relinquishing title and/or rights to the property to the “releasee,” who receives the property in exchange.  

Relinquishment deeds are performed only between legal successors of properties, unlike transfer deeds, sale deeds, and gift deeds.  

What is a Discharging Deed? 

A “release deed” or “deed of release” is a legally binding document that you sign to waive any obligations or rights you have to a piece of property, allowing the buyer to acquire the property completely and clear of any liabilities or other restrictions.  

It is common practice for one co-owner to complete a release deed in order to transfer their interest in the property to the other. 

Prerequisites for Relinquishment and Release Deed 

Execution and registration of these deeds are subject to strict rules set out in Section 17 of the Registration Act of 1908. The relinquishment deed has to be prepared on paper with a stamp on it.  

After that, it has to be brought up in front of the sub-registrar whose authority the property falls under, along with the appropriate fees for registering it. In addition to your signature, this deed has to be signed by two witnesses in order to be executed. The release deed, on the other hand, is not necessary to be notarized. 

Relinquishment Deed vs. Release Deed 

The differences between a release and a relinquishment deed are compared and contrasted in the following table: 

Point of Distinction Release Deed Relinquishment Deed 
Contracting parties Parties to a release deed are often the owner of the property and the banker. The parties to a relinquishment document may be related to one another since they are co-owners who inherit the property. 
Registration The act of registering a release deed is completely voluntary. In spite of this, it is recommended by legal experts that you get your release document notarized. A relinquishment deed has to be registered in accordance with the Registration Act of 1908 in order for it to be considered a legitimate legal document. 
Consideration In order for a release deed to be valid, there must be some kind of consideration, which takes the form of a transfer of security for the debt from the banker to the property owner. There is the possibility of conducting a review. On the other hand, the deed of relinquishment could be signed even if there is no regard shown by family members to one another. 
Encumbrance When the release deed is signed, only then does the property become free of any liens or other restrictions. The property described in this deed does not typically have any encumbrances attached to it. 
Accountability of the interested parties The obligation to pay the dues is one that is placed squarely on the shoulders of the property in question. In response to this, the bank will hand over ownership of the property to the buyer. The main responsibility for discharging the duty lies with the individual who is handing up the property. 
Objective A release deed’s principal function is to cancel any mortgage or other encumbrance placed on the property in favour of the bank. The fundamental objective is to relinquish one of the co-owners rights to the property in exchange for the other. 
Duties and Privileges It is the owner’s responsibility to pay all of the dues, and the owner is the only one who has the capacity to get ownership of the property. Both responsibility and the authority to change the title in favour of the owner are vested in the banker. The banker must accept the dues. Waiving the rights to renounce the property owned by an individual and is entitled to either the agreed-upon compensation or nothing at all. The party obtaining the property right is required to obtain the right and may choose whether or not to pay the agreed-upon amount. 

Revocation of Relinquishment Deed and Release Deed  

In most cases, a registered deed cannot be cancelled only for the reason that the individual transferring their title has changed their mind after the deed has been recorded.  

One has the legal right to challenge a relinquishment for the same reasons that one has the legal right to void an overall contract. Deception, undue influence, intimidation, and falsification are all possibilities. 

It is essential that the two sides come to an agreement about the cancellation. Both parties refer to the individual who relinquishes the deed as well as the person who benefits from the deed being surrendered. In the event that this is not possible, your sole option is to challenge the deed in court. In contrast, once a release deed has been signed, it is impossible to go back on it. 


Both release deeds and relinquishment deeds are analogous to a binary contract, and in order to be considered a legal deed, they are required to have the same fundamental elements. However, a relinquishment document is created when two parties get together, regardless of whether or not there is a consideration. On the contrary hand, a release deed cannot be considered legal until compensation has been exchanged for it. 

Knowing the differences between a release deed and a relinquishment deed may aid you in the property transfer process as you search for a new home.  

HomeCapital’s downpayment assistance program may be able to assist you in the event that you are experiencing financial difficulties. When you choose HomeCapital for your down payment needs, you won’t have to worry about any hidden fees since it is an interest free offering for home buyers to accelerate their homeownership dream. 

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