What is Release deed registration
A Deed of Release is a legal document, which removes lien or claim on a property. The most common deed of release is the one issued by a mortgage lender, once the mortgage is fully paid for. Once the deed is signed, the asset owner acquires full rights of use and misuse on the asset.
A legal document that removes a previous claim or lien on an asset. A deed of release is usually issued once a mortgage or other type of debt, previously secured against the asset, has been paid in full. After the deed of release is written, the asset is owned free and clear by the owner, and any previous claims against the asset that the lender may have had are dissolved.
For example, when most individuals purchase a home, they do so with the help of a mortgage offered by a financial institution. When a home buyer obtains a mortgage to finance the purchase of real estate, the bank providing the funds for the mortgage doesn't just lend them the money in good faith - the bank takes a legal claim against the house as collateral. Once the home owner pays off all the money the bank lent them for the mortgage, the bank would write a deed of release, ending their claim against the house.
Deed of release is the reverse of the aforesaid mortgage deed. It extinguishes the claim and interest of the mortgagee over the mortgaged property and restores the ownership rights of the owner. A deed of release does not create a new or fresh title, it simply restores the suspended rights of the owner. When the loan availed against the mortgage of property is paid off, the mortgaged property is released in favor of the owner (mortgagor) and suspended ownership rights of the owner are restored. The said deed of release also must be registered with the office of Registrar.
The registration of a property involves adequate stamping and paying the registration charges for a sales deed and having it legally recorded at the sub-registrar’s office.Registering the documents relating to the transfer, sale, lease or any other form of disposal of a property is compulsory by law under section 17 of the Indian Registration Act, 1908. The registration of an agreement to buy or sell a flat in Maharashtra is compulsory under Section 4 of the Maharashtra Ownership Flats Act, 1963.