Distinguishing Between Release Deeds & Relinquishment Deeds

Property transactions often involve legal instruments designed to clarify, transfer or surrender rights. Two terms that can cause confusion are release deed and relinquishment deed. Although both may concern the surrender of rights, their legal purpose and practical application can differ significantly. The correct document depends on the nature of the interest involved and the intended outcome.

This blog explains the main difference between a release deed and a relinquishment deed, their property law implications, registration, considerations and potential duty issues in Perth, Western Australia.

What Is a Release Deed?

Deed of Release Mistakes are normally employed to release particular rights, claims, obligations, or interests between parties. The effects of such deeds are very much dependent on the language, the parties involved, the consideration, and the overall transaction. The release could be related to property rights, claims or liabilities associated with property.

Where there is a property interest involved, it is used to show that one party has released another of certain claims or interests pertaining to land. Nevertheless, a deed does not necessarily alter the ownership registered in a WA Certificate of Title. According to Landgate, the instrument used for making changes in the legal ownership of property is a Transfer of Land.

What Is a Relinquishment Deed?

Relinquishment deeds usually involve a situation where a party gives up or surrenders some right or interest. In practice, this could involve a situation where a person relinquishes an interest in some property for the benefit of another party. Western Australian legislation recognises relinquishment within the broader concept of surrender under the Duties Act 2008. This does not mean every document called a “relinquishment deed” has the same legal effect. The actual rights being surrendered must be identified clearly.

Difference Between Release Deed and Relinquishment Deed

Both Release Deed and Relinquishment Deed can remove a party’s rights from a property, but their emphasis is different. A release mainly focuses on rights to give up signing deeds of release or claims. A relinquishment is typically made for giving up a specific interest. Before choosing the document, here are some distinctions between a Release Deed vs a Relinquishment Deed you may need to consider:

1. Primary Purpose

A release deed mainly operates to discharge specific claims, rights, liabilities or obligations between parties. On the other hand, a relinquishment deed is more specifically concerned with surrendering an existing right or interest regarding the property.

2. Effect on ownership

By itself, signing either deed does not necessarily change the registered ownership of land. Where registered ownership is being transferred, the appropriate Landgate form and registration process will generally be required.

3. Legal Consequences

Both documents can create binding obligations and may affect valuable property rights. Their wording should clearly identify the parties, property, relevant interest and intended legal effect.

Tax and Duty Considerations

In Western Australia, a release or relinquishment deed can have transfer duty considerations depending on the interest involved. The Duties Act 2008 (WA) defines “surrender” broadly and expressly includes relinquishment. A surrender of certain special dutiable property is a dutiable transaction. This includes interests such as life interests, remainder interests, easements and rights of way.

However, not every release or relinquishment attracts duty. The duty treatment depends on the nature of the right, whether consideration is provided and the circumstances of the transaction. Therefore, you should establish the duty position before signing the deed.

Identifying the Property Interest Before Proceeding

Prior to drafting a deed of release or relinquishment deed, it is necessary to determine the particular interest in the property. In Western Australia, the interests registered on the Certificate of Title include easements, leases, mortgages, caveats and covenants. According to Landgate, one should check the Certificate of Title to identify the interests over the property.

Different interests are governed by different procedures. For instance, an easement is a right over land and its process of registration is different from that of a registered lease. Landgate provides separate procedures for these interests.

Before selecting the release or relinquishment deed, it is necessary to determine the interest, its holder, its registered status, as well as the right that is going to be released. Checking the title and relevant registered documents can help identify the correct process and prevent the deed from addressing the wrong property interest.

Conclusion

Both a release deed and a relinquishment deed can involve giving up property-related rights. But they work in a different way. A release typically discharges specified claims, rights or obligations. On the other hand, a relinquishment is concerned with surrendering an existing interest or entitlement.

The correct approach is to identify the specific right involved and determine whether the transaction affects ownership or another interest in land. If the transaction includes uncertainty or significant property interests, you may need to consult deed of release lawyers in Perth to ensure the document reflects the intended legal outcome.