By a deed of release, a person actually renounces the claim over a property. A release deed is a document, duly registered under The Indian Registrations Act, 1902, which dismisses a lien or other claim on a property over which the person making a release deed is holding a title. As per Section 17 of the Registration Act 1908, registration of a release deed is mandatory. A deed of release can be executed within the family. A release deed is usually confused with the Gift deed; they are different in nature even though, the legal broad lines are similar. This form of transfer of property is irrevocable, and the most essential element that it is usually without any consideration. Simply, a deed of release does not involve any monetary exchange. Example: A, B, C are sibling, and children of Y, A, B, C have a joint ownership in one of the property of Y, A the eldest brother makes a release deed in favor of C, the youngest sister. Such instrument can be used if the real holder of the property wishes to transfer the rights of a particular property to another joint owner(s).
A right of title from the property could be set free through various modes.
The person who executes or makes the Release Deed is known as "Releasor" and the person in whose favour it is executed is known as "Releasee." A deed of release is usually created when once a mortgage or other type of debt, previously secured against the asset, which has been paid in fully and there are no dues remaining. A deed of release in context of mortgage does not create a new or fresh title; it simply restores the suspended rights of the owner. When both partners mutually purchase a property and at a point of time, one of the partner wants to release his share from the property then in that case Release Deed executed. Hence, renouncing a right in the property, to set free all the claims.