Difference between Relinquishment Deed and Release Deed
Updated: Oct 2, 2022
Relinquishment Deed and Release Deed are terms people find hard to differentiate. Both of these terms are very confusing to people who are not aware of their differences. Though both terms mean the same technology, there is still a minor but significant difference between the two. This article will talk about what these two deeds are and their differences.
Relinquishment deeds are legal documents through which any person who has legal properties in their name can give up their legal rights over the property with their consent to the co-owner.
To understand this deed better, let us take an example: A person who has legal properties in his name dies without making a will. In this case, by law, the legal property goes to his legal heirs (his children). Given a scenario, one of his children wishes to transfer their rights to their sibling. This transfer of ownership is called relinquishment. In this case, it is also crucial that the person to whom the property is being transferred should be interested in entering the deed and give their full consent for taking up the entire share of the property. Suppose the other party is not interested in taking up the property rights or entering the deed. In that case, the relinquishment deed stands canceled or becomes void and cannot be legally enforceable. The parties here are; a person relinquishing the deed and a person in whose favor the deed is relinquished.
It is also important to remember that a relinquishment deed can only be entered by members of the family, co-owner of the property. No other person not related to the family or property can join the deed.
Below is an image of the relinquishment deed
Release deeds are legal documents used to renounce one's claim against a specified legal property. Release deeds are also called as 'deed of reconveyance.' This deed can completely release the parties involved in any obligations. In the case of release deeds, the deed can be entered by anyone interested in the property, regardless of their relationship to the family or the property.
For example: when a bank provides a loan to a person, the bank takes complete control of the property pre-owned by the person claiming the loan. This is the process of accepting collateral for the loan. When the person clears the loan, the collateral under the bank's control is transferred back to the owner along with a deed of release. The bank and the person are related only through the loan service but are not relatives. This is why it is said that it is not essential for two parties to be associated with each other to enter the release deed.
Significant differences between relinquishment deed and release deed.
The significant difference between the two deeds is the parties involved in the deed. The relinquishment deed involves parties related to each other through familial relationships, primarily for inherited properties. Release deed can be entered by parties not associated with each other but provide services and guarantees, like bank loans and collateral.
The table below gives a full view of the differences.