|September 8 2012, 07:17 AM||#1|
Giving up your share in a property?
Relinquishment is not the same as selling your share in a property. It can be sold to anyone, but only co-owners get your relinquished share
Here are numerous modes through which an individual can choose to transfer his rights and title in an immoveable property in favour of another. This can be done by sale, gift and will. Relinquishment of property is one such mode. The term ‘relinquishment’ essentially refers to the abandoning and surrender of rights, title and interest, by one co-owner in favour of other co-owners of the same property. Thus, in order to arrive at a valid relinquishment of property, the property in question must be owned by more than one person.
The consequence of relinquishment of one co-owner’s share in a property is the enlargement of the shares of other co-owners. For instance, if there are three co-owners of a particular property (each having onethird share) and one coowner relinquishes his share in the property, the share of the remaining two co-owners in the property shall automatically be enlarged to onehalf each. This draws attention to the difference between relinquishment of a property and sale/conveyance of a property.
In a sale or conveyance, an owner can validly sell his/her share to a person who has no existing common or joint interest in the property in question. On the other hand, a valid relinquishment of one’s share in a property results in enlargement of share of person/s who actually has/have an existing or joint interest in such property. Relinquishment of property cannot be made in favour of a person other than a coowner. If a relinquishment is made in favour of a person who is not a co-owner, the transaction shall be treated as a sale/conveyance instead.
Another important aspect is with respect to properties which are owned by several co-owners. Here, if a coowner relinquishes his/her share in favour of one or more specific co-owner/s, to the exclusion of the other coowners, this is not considered valid. It will also be treated as a gift/sale/conveyance of the co-owner’s share in the points out Ajay Dabas, director, Certes Realty Ltd.
It is interesting to note that there is a policy under MPD 2021 for amalgamation of plots called the Incentivised Redevelopment Plan. If the MPD notifies the IRP, developers will be able to legally buy plots in these colonies and redevelop them. This will throw up a fair number of legitimate housing units and improve the supply in the market. This will also ensure that prices do not hit the roof, Dabas adds.
The authorisation plan has its share of critics. According to PSN Rao, professor of housing, School of Planning and Architecture, New Delhi, property. For instance, coowner A cannot validly relinquish his share in the property only in favour of co-owner B, to the exclusion of coowner C. If at all a co-owner is desirous of giving his share in the property to only one/few co-owners, he may validly execute a sale deed of gift deed or make a will of his share instead. This will have significant stamp duty implications, given the differential the move to regularise 895 colonies is only an invitation for more violations to happen. In any case, most of these colonies present an unhygienic and undesirable physical environment. “If we really want to make housing affordable, we need to increase the supply in a planned manner with good infrastructure. Most of these are unsafe and not earthquake-resistant. Fire tenders also cannot enter these colonies on account of the very narrow roads. They are a disaster waiting to happen any time and the Delhi government is only adding fuel to the fire,” he adds. rates of stamp duty payable on a relinquishment vis-a-vis sale of a property.
Relinquishment of a property can be made for consideration and without consideration. Whether or not any consideration was received by the individual who relinquished his/her title in the property, will not affect the validity of such a relinquishment in the eyes of the law, so long as the intention of the parties is clear.
A relinquishment deed should be stamped and registered as per the rates of stamp duty prescribed by the state in which the property in question is located.
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