Question:
My husband and I jointly own a house. We are getting divorced, and my husband has agreed to give his share of the house to me. How can I transfer the property entirely into my name? Do I need a Release Deed?
Yes, a Release Deed may be used when one joint owner wants to give up or release his or her rights in the property in favour of the other co-owner. However, the appropriate document can depend on how the transfer is structured and the terms of the divorce or settlement.
In the situation described above, your husband is the existing co-owner and intends to relinquish his share in the jointly owned property so that you become the sole owner.
How Does a Release Deed Work?
A Release Deed is a document through which one person releases his or her rights or share in a property in favour of another person who has an existing interest in the property.
In this case:
- Your husband will generally be the Releasor.
- You will generally be the Releasee.
- After registration and completion of the required formalities, your husband's share in the property can be released in your favour, subject to the terms of the document.
For a property jointly owned by spouses, the Release Deed should be properly drafted based on the title documents and the terms of the settlement between both parties.
Documents Generally Required for Registration
The following documents may be required:
- The registered sale deed or other title document under which you and your husband jointly acquired the property
- eKhata
- Aadhaar of both parties
- The Release Deed prepared and executed for registration
- Identity and address proof of the witnesses
Where Is the Release Deed Registered?
The Release Deed should be presented for registration before the appropriate Sub-Registrar Office having jurisdiction over the property.
Generally, the parties executing the document and the required witnesses must appear before the registering authority and complete the biometric, identification, and registration formalities.
Once registered, the Release Deed becomes an important document supporting your ownership of the released share.
Example of a registered Release Deed:
What About Stamp Duty and Registration Charges?
The stamp duty and registration charges applicable to a Release Deed depend on the applicable state rules, the relationship between the parties, and the nature of the transaction.
Therefore, before registration, you should confirm the current stamp duty, registration fee, cess, scanning charges, and other applicable costs with the Sub-Registrar Office or through the relevant government registration system.
Do not rely on an old fee amount, as government charges and applicable rules may change.
What Happens to the Joint Home Loan?
Transferring the property ownership and changing the names in the home loan are two separate matters.
Even after your husband releases his share in the property, he may continue to remain a joint borrower/co-borrower in the home loan unless the bank formally removes him from the loan.
Therefore, if you want the property and the loan to be solely in your name, you should separately approach the bank regarding the loan.
Request the Bank for Novation or Change in Borrower Structure
You can contact the lender and ask about novation, borrower substitution, or removal of a co-borrower, depending on the bank's process.
The bank will normally assess whether you are financially eligible to continue repaying the loan on your own.
The bank may ask for documents such as:
- Request/application for novation or removal of the co-borrower
- Registered Release Deed, where applicable
- Divorce settlement agreement, consent terms, or other relevant legal documents
- Income proof
- Salary slips or other proof of earnings
- Bank statements
- Existing home-loan documents
- Any other documents required by the lender
The exact process varies from bank to bank.
Why Is It Important to Remove the Co-Borrower From the Home Loan?
This is an important point that is often overlooked.
Suppose your husband releases his ownership rights in the property, but his name continues to remain on the home loan. In that situation, the property ownership and the loan liability may no longer be aligned.
For example:
Property ownership:
You – 100%
Home loan:
You + Husband
Therefore, it is advisable to discuss the borrower's status with the bank and complete the required formalities if the intention is for you to become the sole borrower.
Once the loan is completely repaid, the lender will undertake the applicable mortgage/lien release or reconveyance/discharge formalities, depending on the type of security and the lender's procedure.
Having the loan records updated in advance can help avoid unnecessary complications when the loan is closed.
Important: Property Transfer and Loan Transfer Are Different
A common misconception is that registering a Release Deed automatically removes the other person's name from the home loan.
It does not.
The Release Deed deals with the rights and interest in the property.
The bank's novation or borrower-change process deals with the loan obligation.
Therefore, you may need to complete both processes separately:
Step 1: Execute and register the appropriate property transfer document, such as a Release Deed, where applicable.
Step 2: Approach the lender to remove the co-borrower or restructure the loan.
Step 3: Provide the bank with the required legal, identity, and income documents.
Step 4: Obtain written confirmation from the bank regarding the revised borrower structure.
Step 5: After the loan is fully repaid, complete the lender's mortgage/lien release or reconveyance formalities.
Before Registering the Release Deed
Before proceeding, it is advisable to verify the following:
1. Existing title documents
Check how the property is currently registered and the exact ownership shares of both spouses.
2. Home-loan status
Determine whether the property is currently mortgaged to a bank or financial institution.
3. Divorce or settlement terms
Ensure that the transfer of the property is consistent with the divorce settlement, consent terms, decree, or other applicable legal documents.
4. Bank requirements
If there is an outstanding home loan, confirm whether the lender requires prior consent, documentation, or any additional formalities.
5. Applicable stamp duty and registration charges
Verify the current government charges before executing the document.
Conclusion
When a husband and wife jointly own a property and one spouse wants to relinquish his or her share in favour of the other, a Release Deed can be an appropriate instrument in many situations.
However, transferring the property into one person's name and removing a spouse from a joint home loan are separate and banking processes. Completing only the Release Deed does not automatically remove the other spouse from the loan.
Before proceeding, carefully review the title documents, divorce settlement, loan documents, and the requirements of the concerned bank and Sub-Registrar Office.
Thank you for reading.
For consultation regarding property documentation, Release Deeds, sale deeds, registration, and related property matters:
PGN Property
Email: pgnproperties@gmail.com
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