FAQs on Relinquishment agreement for NRIs.
1. What is a relinquishment agreement for NRIs?
A relinquishment agreement for NRIs is a legal document that allows an NRI (Non-Resident Indian) to relinquish his or her rights in a property in India. Family members usually execute this document, and it specifies the terms and conditions under which the NRI will give up his or her rights to the property.
2. Why do NRIs need to sign a relinquishment agreement?
NRIs may need to sign a relinquishment agreement if they have inherited property in India but do not want to maintain ownership or responsibility for the property. It may also be necessary if the NRI wishes to transfer his or her ownership rights in the property to another family member.
Consult CA Arun Tiwari for more info at 📞 8080088288 or cs@aktassociates.com
3. What are the benefits of signing a relinquishment agreement?
Signing a relinquishment agreement can help NRIs avoid legal disputes with family members over property ownership. It can also provide clarity about who has ownership rights to the property and prevent any confusion in the future.
4. Can an NRI sign a relinquishment agreement remotely?
Yes, an NRI can sign a relinquishment agreement remotely. One can execute the agreement through a power of attorney or by using electronic signatures, provided that one draft and execute the document in compliance with the laws of India.
5. Do NRIs need to pay stamp duty on relinquishment agreements?
The state in which the property is located may require NRIs to pay stamp duty on relinquishment agreements. Authorities usually calculate the stamp duty as a percentage of the property’s market value or the consideration paid for the relinquishment.
6. Is it necessary to register a relinquishment agreement?
Yes, a relinquishment agreement must be registered with the relevant authorities in India, such as the Sub-registrar’s Office or the Registrar of Assurances. This is important to ensure the validity and enforceability of the agreement.
7. Can a relinquishment agreement be challenged in court?
If someone finds a relinquishment agreement to be fraudulent, coerced, or illegal, they can challenge it in court. Therefore, it is important to ensure that the agreement is drafted and executed in compliance with the laws of India and is free from any coercion or duress.
8. How can an NRI ensure the validity of a relinquishment agreement?
An NRI can ensure the validity of a relinquishment agreement by engaging a qualified lawyer in India to draft and execute the agreement. The lawyer can ensure that the agreement complies with the laws of India and is free from any legal defects or ambiguities.