Release Deed: Meaning, Uses, Format and Registration

A release deed is an important document to transfer property ownership. It is also a crucial document when you fully repay your Home Loan amount and get the complete property rights from the bank.  Other uses of the release deed include ending the personal guarantee liabilities, and settlement of disputes between the parties. This article gives you a complete overview of  What is release deed, release deed registration, its importance, and the release deed format. 

What is a Release Deed?

A Release Deed is used when one co-owner of the property wants to release their ownership and transfer the property rights to the other co-owners.

A Release deed is generally done for the property owned by multiple owners.   

For example, if the property is owned by all the family members, and they want to transfer all the property rights to one member of the family, then they have to execute the Release Deed.

A release deed can also be executed for ending the liabilities of the personal guarantees, the bank’s legal hold after repayment of the home loan, and for the settlement of the disputes between the parties. 

In short, the release deed is used when one party needs to release the ownership of something to another property. 

The release deed may or may not involve the monetary transaction between the two parties. 

What is the Purpose Of Deed Of Release

A Deed of release is also used between the two parties for clear settlement.   

Where both the parties release each other from certain obligations. 

Once the Release Deed is signed, the parties cannot legally challenge each other based on the agreed terms and conditions mentioned in the Release Deed. 

Release Deed Registration

According to section 17 of the Registration Act 1908, The release deed is considered valid only when the release deed is registered at the sub-registrar office. 

Therefore, it is necessary to register the Release Deed at the sub-registrar office by paying the applicable release deed stamp duty. 

You can register the release deed at the sub-registrar office in online and offline modes.

Also, to register the release deed you need to pay the applicable Stamp Duty on the Release Deed. 

Stamp Duty and Registration Charges on Release Deed 

By paying the applicable Stamp Duty and Registration charges on the release deed you can have it registered at the sub-registrar office. 

Here are the release deed stamp duty and registration charges in Mumbai.

Release-Deed Registration Online

Here is how you can register the Release Deed Online in Mumbai.

Step 1: Visit the Official GRAS Portal at gras.mahakosh.gov.in/

Step 2: Then Click On Pay Without Registration 

Step 3: Then From the Citizen Section Select The Applicable Option 

Step 4:  Select the Suitable Payment Option and then Click On Proceed. 

Step 5: Check The Generated Chalan

Step6: Make Payment and Get the Receipt of the Release Deed Registration 

Where Release Deed is Used?

The release deed is used in the following cases.

• For Ending The Right On Property 

• For Ending The Personal Guarantee & Liability

• For Ending The Loan Liabilities & Mortgages

• For Ending The Contract Between the Employee and the Employer

• For Ending The Commercial Dispute between the two parties 

Release Deed of Ancestral Property Format

The Release Deed Format consists of the basic details of the property co-owners

Following are the basic details required in the Release Deed-

• Name of The Property Co-owners
• Professional Details
• Residential Details
• Property Details 
• Property Registration Details
• Terms and Conditions 
• Witness Details

Release Deed Format For Flat

Release Deed Format For The Land Property

Why Release Deed Is Important In Home Buying?

When you take a Home Loan to buy a new property, the bank holds the legal right on the property. 

When you completely repay your Home Loan to the bank, the bank releases its property right.

Therefore, after repaying the home loan amount, the bank or financial institution can execute a release deed with you. 

This ends the bank’s legal hold on the property & makes you the complete owner of the property. 

Difference Between Release Deed & Gift Deed

Here is a key difference between Release Deed and Gift Deed.

The difference between the release deed and gift deed is important to understand especially when transferring the rights of the inherited property. 

When one family member needs to transfer the property rights to the other, either a Release Deed or Gift Deed can be executed. 

Release Deed and Gift Deed may have different applicable stamp duty charges. 

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