What is release deed? Use of release deed in home loans, points to be included in a release deed

A release deed has significant applications in real estate transactions. The article discusses some of them, such as the transfer of property share among parties and banks issuing release deed on loan repayment completion.

Its significance in real estate transactions

There may have been instances when you willingly gave up your right on something in favour of someone else. Conversely, there may have been instances when someone else willingly gave up their right on something in your favour. This process of giving up a right on an immovable asset such as real estate is done through a release deed.

What is a release deed?

A release deed is a document through which an individual gives up their right or title over a property or any other asset in favour of another individual. For example, Ajay and Vijay inherited a house as legal heirs after their father’s death as there was no will. Ajay is well-settled in his career and doing well financially. So, he decides to give up his share of the house property in favour of his brother Vijay. Ajay can do this by executing a release deed.

A release deed is also known as a deed of release. One party renounces or forgoes their right over a property. It removes any claim, interest, or right over the property, freeing it from encumbrances. 

Also Read: 5 Popular Ways To Transfer Your Immovable Property

Terms related to release deed

Here are some of the terms that you need to understand with regard to a release deed:

a) Releasor: The person giving up their right is known as the releasor. In the above example, Ajay is the 50% owner of the property and is giving up his share of the property. So, Ajay is the releasor.

b) Releasee: The person in whose favour the right is transferred is known as the releasee. In our example, Vijay is getting the right over the entire house property. So, Vijay is the releasee.

c) Consideration: A release deed may or may not involve a financial consideration. In the above example, Ajay gives up his share of the property without any financial consideration. However, some release deeds may involve financial consideration.

d) Registration: A release deed has to be executed on a stamp paper and registered at the sub-registrar’s office to be legally enforceable. Registration is required as per Section 17 of the Registration Act, 1908. For registration, the stamp duty and registration fee need to be paid. The stamp duty amount differs from state to state.

e) Irrevocable: Once a release deed is registered, it becomes a legal document and is irrevocable. In the above example, once Ajay gives up his right over his property share, it will be irrevocable. Hence, a person should always seek legal advice before executing a release deed.

Use of release deed in home loans

Apart from inherited properties, a release deed is also used in home loans. When a person completes the repayment of the entire home loan, the bank makes a release deed mentioning the same. Through the release deed, the bank relinquishes the temporary right (through a lien or other form) it had acquired over the property through the home loan in favour of the home loan borrower (house owner). The release deed makes the property title clear in favour of the house owner, free of any encumbrances.

Also Read: 8 Legal Estate And Property Rights Guaranteed To Women

Points to be included in a release deed

When executing a release deed, the following points need to be included in it:

a) The date from when the release will be effective.
b) The parties involved, along with the full name, age, address, etc. These are mentioned as ‘Releasor of the First Part’ and ‘Releasee of the Second Part’.
c) The details of the inherited property or acquired property whose right is being released by one party in favour of the other party.
d) Details of the consideration (amount) paid (if any) by the releasee to the releasor.
e) The release statement mentioning the releasor will have no claim over the property once the release deed is executed.
f) Signature of the releasor and releasee.
g) Name and signature of the witnesses.

Sample release deed

Here is what a sample release deed looks like:

Sample release deed

Involvement of multiple parties in a release deed

We saw the example of Ajay and Vijay that involves one releasor and one releasee. However, there may be instances when one or more than one person (multiple releasors) give up their right in favour of one or more than one person (multiple releasees). An individual can execute a release deed in favour of a person outside the family. For example, if two business partners have bought a property together, one partner may execute a release deed in favour of the other. 

Also Read: What Is A Gift Deed? Here's Everything You Need To Know


As we just saw, a release deed is an important legal document for releasing one's right over a property in favour of another. While a release deed has many applications in various industries, it is mostly used in real estate transactions. The two most common applications include a person releasing their property share in favour of another and a bank executing a release deed after the full repayment of the home loan. So, if you have a home loan, make sure you get the release deed from the bank once you complete the loan repayment.


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