Release Deed Registration

Types of release deeds

Before understanding the importance of a release deed, one should understand how the different types of release deeds are used:

1. Release deeds are used to safeguard and end personal forms of guarantees. To explain in detail, this consists of releasing the guarantee by a personal guarantor to the other individual.
2. Release deeds are also used to safeguard and end bank loan agreements.
3. Release deeds are also used for ending any kind of commercial dispute.

Need for release deed

The 5 E’s by which release deed registration is beneficial are-

1. End the right on one’s property
2. End the liabilities of loans and mortgages
3. End personal liability by attaining a guarantee
4. End the contract between the employee and the employer
5. End the commercially set dispute between any two parties

Release deed registration for home loans

Whenever a borrower takes a bank loan to buy a new property, the bank withholds the legal rights on that property until repayment is done. In this case, the bank holds the power to execute a deed of release with the loanee. This document acts as proof to safeguard the loan repayment to the bank.

Release Deed Registration details

As per section 17 of the Registration Act of 1908, the release deed acts as the sole valid confirmation when registered at the sub-registrar's office. This implies that it is highly necessary to register the release deed at the sub-registrar office, which requires paying a stamp duty. 

Both online and offline modes are available for release deed registration, which has made it even more convenient for the citizens.

For release deed registration online, one should follow the steps listed below:

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• -Visit the official portal of the Government Receipts Accounting System (GRAS). 
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• -Select the option “Pay without registration.”
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• -Select the most suitable option from the “Citizen selection” menu. 
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• -Select the suitable option for payment and then proceed to pay.
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• -Download the challan generated by the portal. 
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• -Procure the receipt of release deed registration upon performing successful payment.

Format for release deed registration

Release deed registration’s format asks for sharing the basic details of property co-owners, which are-

1. Name of both property co-owners
2. Residential details
3. Professional details
4. Property details
5. Property registration details
6. Terms and conditions
7. Witness details

Differentiating between release deed and gift deed

When it comes to a gift deed, it can be implemented by all kinds of property owners on anyone. There is no monetary transaction involved in creating this type of deed, and it is open to be executed for any kind of property. On the other hand, a release deed can be implemented by one property’s co-owner to another property’s co-owner. This type of deed registration keeps the option of making a monetary transaction open to the parties. However, this deed can be created only for properties that are inherited.

WebLex’s Stance:

The release deed is the legal document that is used to free any property or asset from obligations. It has various types and purposes, out of which the most commonly used one is the release of collateral property by the bank upon successful repayment of a home loan. Now that you know how to register for a release deed and what its importance is, you won’t fall behind while getting one!