How to Relinquish Ownership of Inherited Property to Next of Kin?

Explainer Jul 25, 2022

This article explores explores ways in which a property inherited by an individual can be relinquished to his or her next of kin. The example explored here is that of a parent and her children.

If a possessor wants to relinquish an inherited property to her children, 3 cases are applicable. It is assumed that there are no other people associated with ownership of the property in question.

The Children Are Part-Owners of the Inherited Property

If the children are part owners of the inherited property along with the possessor, the property can be transferred using a Relinquishment Deed. Under Section 17 of the Registration Act, any transfer of property must be accompanied with a valid registration. Therefore, transfer of property ownership through a Relinquished Deed must also be registered with the relevant authorities.

A relinquishment deed is a type of document used to transfer property rights between co-owners of a property. For instance, in case a property is owned by 2 people (joint ownership), by using a relinquishment deed, the entire property can be transferred to one person. You can read more about relinquishment deeds here.

In this case, if the inherited property is jointly owned by the possessor and her children, she can relinquish the rights to her children.

Sample view of a Relinquishment Deed is found below.

Image Source: Government of Mizoram

The Children Are Not Part-Owners of the Property in Question

In case the children are not part-owners of the property, the possessor may use a Gift Deed to transfer property rights to the children, as facilitated by Section 122 of the Transfer of Property Act. A gift deed is a type of conveyance deed in which a property is transferred from one person to another, without a consideration (or transaction) amount. Section 17 of the Registration Act is applicable for Gift Deeds as well. You can read more about this deed type here.

Sample view of a Gift Deed is found below.

Image Source: Government of Goa

Inheritance Through Will

The third option is to pass inheritance through the use of a will. However, transfer of ownership by will is only applicable after the possessor’s demise.

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