What is Release Deed - Know Its Types and How it Works?

A release deed is a legal document that transfers property title from the legal heirs to a specific individual after the owner's death. It works by having other heirs relinquish their claim. Types include full and partial release. Charges involve stamp duty, based on property value, and registration fees. Consulting a lawyer is crucial. Read more to understand its purpose, types and other details.
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2 min read
25 September 2025

A release deed is a legal document that plays an important role in property transactions and settlements. It serves as a formal agreement between two parties, releasing one party's interest or rights in a property in favour of the other. Read on to understand more about release deed.

Purpose of a release deed

The primary purpose of a release deed is to transfer, relinquish, or release one party's rights, interests, or claims in a property to another party. This can happen in various scenarios, such as when a co-owner decides to give up their share, when a borrower repays a loan secured by the property, or during family settlements where one member decides to release their stake.
A release deed is particularly crucial when it comes to joint property ownership. It ensures a smooth transfer of ownership rights from one party to another, preventing any future disputes or legal complications.

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How does a deed of release work?

A deed of release plays a key role in property transactions, especially when loans or shared ownership are involved. Suppose you have taken a home loan and decide to repay it earlier than the originally agreed period. In that case, you will need to request a settlement statement from your lender to confirm the exact amount due. Once the repayment is complete, the lender issues a deed of release.

This document acts as official proof that your financial obligation tied to the property is fully settled. Beyond simply showing that no dues are pending, it provides legal clarity by confirming that your ownership rights are free of any restrictions or claims. Keeping this deed safely is very important because it ensures that no confusion arises in the future regarding property ownership. If ever a dispute, misunderstanding, or clerical error occurs, having this deed gives you strong evidence that your property is entirely your own, without encumbrances, liens, or unsettled claims.

Types of release deed

Release deeds can take several forms depending on the situation, the relationship between parties, and the terms of the transaction. Each has unique legal implications, so it is essential to understand their purpose before proceeding.

Full release deed

A full release deed is used when the person giving up ownership (the releasor) transfers all their rights in a property to another person (the releasee). Common examples include family settlements or when an heir renounces inheritance rights. After execution, the releasor has no claim over the property, ensuring absolute ownership passes to the releasee.

Partial release deed

This deed is applied when only part of the rights are transferred. For example, one co-owner may give up a portion of their share to another co-owner or an outside party. The releasor still retains some rights in the property, meaning the transfer is only partial.

Conditional release deed

In this type, rights are released only if specific conditions are fulfilled. This is common in business or financial dealings, where the release is tied to performance or payment milestones. The deed becomes fully valid only once the conditions are satisfied.

Release deed among family members

This deed is frequently used for transfers within a family, often without payment. It helps distribute property fairly among heirs or during estate planning. However, stamp duty and registration laws apply, so it is important to comply with the legal process.

Release deed in blood relation

This is a more specific version of the family release deed, designed for direct relatives such as parents, children, or siblings. In some states, reduced stamp duty applies, making it financially more favourable for close relatives.

Release deed without consideration

In this case, rights are transferred without monetary exchange, such as when property is gifted to a family member or donated to a trust. Even though no payment is involved, the deed must still be registered properly to be legally valid.

Legalities of a release deed in India

In India, a release deed is governed by the Indian Registration Act, 1908, and it must be registered with the sub-registrar of assurances in the respective jurisdiction where the property is located. The registration of a release deed ensures its legal validity and acts as evidence in case of any disputes.
The release deed should be executed on non-judicial stamp paper of the requisite value, as prescribed by the Stamp Act applicable in the concerned state. It must also be signed by the parties involved and attested by at least two witnesses.

Release deed format

A release deed includes the following details:

  1. Title: Clearly stating that the document is a release deed
  2. Parties involved: Names and details of the releasor (the party releasing the rights) and the releasee (the party receiving the rights)
  3. Property details: Description of the property being released, including its location, survey number, and any other relevant details
  4. Consideration: If any consideration is involved, it should be clearly mentioned in the deed
  5. Rights being released: Specific details about the rights, interests, or claims being released by the releasor
  6. Legal declarations: Statements asserting that the releasor is willingly and voluntarily releasing the rights without any coercion

Legal implications and significance

  1. Transfer of ownership
    A Release Deed facilitates the seamless transfer of ownership by legally releasing the relinquishing party from any claims or rights associated with the property. It is a fundamental step in ensuring a clear transition of property rights.
  2. Avoidance of future disputes
    By clearly outlining the rights being relinquished, the Release Deed helps prevent potential conflicts and disputes in the future. This legal document acts as a safeguard, providing a clear record of the transaction and the intentions of the parties involved.
  3. Inheritance and succession planning
    Release Deeds are frequently used in inheritance and succession planning, particularly in joint family properties. Individuals may choose to release their share in favour of specific family members, streamlining the transfer of property within the family.
  4. Tax implications
    It is essential to consider the tax implications associated with a Release Deed. Depending on the nature of the transfer, there may be capital gains tax or other tax liabilities that need to be addressed. Seeking professional advice is advisable to navigate the tax landscape effectively.

Step-by-step process on how to register for release deed

Registering a release deed involves several steps to make it legally enforceable.

Step 1: Drafting the deed

The first step is creating a proper draft. The draft should mention details of the releasor (the person giving up rights) and the releasee (the person gaining rights). It must include a full description of the property, the relationship between the parties, the reason for release, and whether consideration (payment) is involved. Although standard formats are available, it is best to have a lawyer prepare the draft to avoid mistakes.

Step 2: Stamp duty and registration charges

Next, stamp duty must be paid. The amount depends on the state, the property’s market value, and whether the release is between close relatives. For example, some states charge a concessional rate when the transfer is between family members. Once paid, the document should be printed on stamp paper or e-stamped and signed by both parties, along with two witnesses.

Step 3: Submitting the deed at the sub-registrar’s office

The final stage is registering the deed. Both the releasor and releasee must appear before the Sub-Registrar with ID proofs, passport-sized photographs, and the property documents. The officials will verify the details, capture biometric data, and confirm signatures. After successful verification, the deed is officially registered, making it a legally valid and binding record of ownership transfer.

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Documents required at each stage of the release deed process

Stage

Documents required

Drafting the release deed

– Identity proof of releasor and releasee (Aadhaar, PAN)
– Property details (Khata, survey number)
– Relationship proof (if claiming concessional stamp duty)

Stamp duty and registration

– Draft of the release deed
– Stamp duty payment receipt
– Signed deed on stamp paper
– Two passport-sized photos of both parties
– ID proof of witnesses

Sub-registrar submission

– Original signed release deed
– ID and address proof of both parties
– PAN card copies
– Encumbrance Certificate (if available)
– Property documents (Sale deed, Khata, tax receipts)
– Passport-sized photos

 

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Conclusion

A deed of release is more than just a legal formality—it provides assurance that property ownership is free from disputes or overlapping claims. Whether used for inheritance settlements, family distributions, or conditional agreements, this document clearly sets out who holds rightful ownership. It is particularly important in family and business contexts, where misunderstandings can lead to disputes.

While the deed can be a practical solution, one must not overlook its potential risks. Mistakes in drafting or failure to comply with stamp duty and registration laws may create problems later. Hence, consulting a property lawyer is always advisable before executing a deed of release. With proper care, this document offers both security and peace of mind.

Clear property documentation not only provides peace of mind but also opens up opportunities for property investment and home financing. If you are ready to take the next step in property ownership or need funding for your dream home, check your loan offers with Bajaj Finserv for competitive rates and quick approval. You may already be eligible, find out by entering your mobile number and OTP.

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Frequently asked questions

How can you write a release deed?

Writing a release deed involves understanding the specific details of the property transaction and adhering to the legal format. It is advisable to seek legal assistance to draft a comprehensive and legally sound document.

What are the rules for release deeds?

Release deeds must comply with the rules outlined in the Indian Registration Act, 1908, and the Stamp Act applicable in the concerned state.

Is stamp duty payable on a release deed?

Yes, stamp duty is payable on a release deed, and the amount varies based on the state where the property is located. The stamp duty should be paid on non-judicial stamp paper of the prescribed value.

What is the difference between relinquish deed and release deed?

While both deeds involve the relinquishment of rights, a relinquish deed typically involves giving up one's claim or interest in favour of another party without any consideration. In contrast, a release deed may involve consideration for the release of rights, and it is commonly used in property transactions and settlements.

Who pays the stamp duty on the deed of release?

In most cases, the person giving up their claim to the property—the releasor—bears the responsibility of paying the stamp duty. The amount varies across states and may be lower if the transaction is between close relatives. Paying the correct stamp duty ensures the document is legally enforceable and prevents future disputes.

Can a release deed be reversed after registration?

Once registered, a release deed is generally final and cannot be undone. It acts as a binding legal agreement where one party permanently gives up property rights. To avoid regret or disputes, it is important to fully understand the implications and seek legal advice before signing and registering the deed, as reversal is not possible afterwards.

What is the purpose of the release deed?

The main purpose of a release deed is to allow one party to legally surrender their rights in a property. It provides clarity and transparency by formally transferring ownership to another person. This helps resolve ownership disputes, simplify inheritance issues, and ensure that the person gaining ownership has complete and undisputed rights over the property.

Clear property ownership makes it easier to secure home financing when needed. If you are planning to purchase property or expand your real estate portfolio, check your eligibility for a home loan from Bajaj Finserv to explore competitive rates and flexible repayment options. You may already be eligible, find out by entering your mobile number and OTP.

What is an example of a release deed?

A common example is when a sibling gives up their share in a family property so that another sibling becomes the sole owner. No payment may be involved, but the deed still needs to be executed and registered. This ensures the transfer is legally binding and that ownership is clearly established in the records.

What is the other name of the release deed?

A release deed is often referred to as a relinquishment deed. Both terms describe the same legal document, where one person formally gives up their rights in a property. This is a recognised and accepted instrument under property law, ensuring transparency and legal validity in the transfer of ownership from one party to another.

Can a release deed be challenged?

Yes, although a release deed is legally binding, it may be challenged in court under exceptional circumstances. This usually occurs if fraud, coercion, or misrepresentation is proven. The law allows challenges within a specific period after registration. For this reason, it is vital that all parties execute the deed willingly, with full knowledge of its consequences.

When property ownership is clear and undisputed, it becomes a valuable asset for securing home loans and other financial products. If you need financing for property purchase or home improvement, check your loan offers with a home loan from Bajaj Finserv for attractive interest rates and hassle-free processing. You may already be eligible, find out by entering your mobile number and OTP.

What is the limitation period for release deeds?

Under the law, a release deed may be contested within three years from the date of registration. After this period, the deed generally cannot be legally challenged. This limitation period ensures that disputes are raised promptly and prevents ownership issues from arising indefinitely, giving the property owner greater security and clarity about their rights.

What is the difference between release deed and settlement deed?

A release deed is used when one co-owner gives up their rights in favour of another. A settlement deed, however, is broader and usually records an agreement between parties to resolve a dispute. While both involve property transfers, the release deed focuses on ownership surrender, whereas a settlement deed focuses on resolving disagreements.

Who can execute a release deed?

Any co-owner or person with a legal share in a property can execute a release deed. All releasors must sign the document for it to be valid. If multiple co-owners are involved, and not all are willing to release their rights, the deed remains binding on those who sign it, but not on the non-signatories.

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