Release deed

Querist : Anonymous (Querist) 19 November 2011 This query is : Resolved
sir,
i am planning to settle in abroad in January 2012 and i am not planning to come India near future.
while taking home in pune, Maharashtra my father was co-applicant.
he had contributed in closing the loan from bank last month.
what is release deed?
shall i file release deed on property instead selling it now as property prices are appreciating.
can my father give this property to my sister or elder brother.
i don't have objection if my father give flat to my brother or sister in my absence if they pay me at-least 50% of flat price lump-sum or in installments.( they can not buy flat with market price because of low income and 50 % they can pay i guess...)

Follow Query

Report Abuse

prabhakar singh (Expert) 19 November 2011
Release is also specie of transfer of property a Release in fact may amount to a conveyance or a gift or an exchange. If a person releases his vested right or interest in a property for consideration, it is nothing but a conveyance or sale. If he releases his vested interest without consideration but only for natural love and affection it will amount to a gift. If he releases his interest in one property in favour of another in consideration of that other person releasing his interest in another property in favour of the former, the transaction is nothing but an exchange or partition.

THE STRIKING POINT YOU NEED TO NOTE IS THAT

The description release is applied when the transfer is not of the whole property but only of an interest in it and that to in favour of another who also has the interest in the property and he is not astranger.

THEN IF YOU ARE THINKING OF ONY A RELEASE DEED THEN YOU CAN MAKE IT ONLY IN FAVOR OF YOUR FATHER WHO ALONG WITH YOU OWNS 1/2 IN FLATS.

M.Sheik Mohammed Ali (Expert) 19 November 2011
yes, i do agree expert query reply

prabhakar singh (Expert) 19 November 2011
As you desire 50% of the value of investments
in two flats you can and in my opinion you should execute either an agreement to sale or a sale deed it self whereby you covenant with them to realize the sale proceeds of flats [consideration]in equated installments monthly/quarterly/half yearly/or annually and the sale to become absolute only on payment of final installment.

M/s. Y-not legal services (Expert) 19 November 2011
Instead of giving release deed you may give a power of attorney to your father. Its may be right choice. Its mean the property can be sold to any one. Its not issue. But about consideration its according your your terms with your father.

prabhakar singh (Expert) 19 November 2011
POA in favor of your father would not be a bad idea ,as Mr. Tom opines but it may not serve the purpose of consideration you desire to realize ,if future circumstances emerges
in any untoward adversity which may not look visible just now.