Deed Of Release

Updated on January 5, 2024
Article byPrakhar Gajendrakar
Edited byShreeya Jain
Reviewed byDheeraj Vaidya, CFA, FRM

Deed Of Release Meaning

A deed of release is a legal charter document validating the previous agreement termination present on a property, asset, agreement, or entity. It is a valuable charter that aims to ensure that all the parties involved in a deed are released and free from any obligation or liability.

Deed Of Release

You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Deed Of Release (

Whenever an asset is involved in an agreement, the deed of release eliminates the previous claim. It establishes that the transfer of ownership or obligation has been rightfully served. Therefore, this document is necessary to resolve disputes, and allegations, protect parties, and settlement of claims. The document is archetypically used in loans and real estate property matters.

Key Takeaways

  • The deed of release is an official document that signifies the termination of a prior agreement and impediments on an asset or property setting them free.
  •  Therefore, it ascertains that no party involved in the prior agreement can continue or bring a dispute regarding the asset or subject matter.
  • This document is a time-consuming process. Hence, it is only validated after proper registration, stamp, and signature of the parties involved in front of witnesses.
  • It is a necessary document; every party in an agreement must obtain it after settling the deal as legal proof.

Deed Of Release Explained

A deed of release is an official document stating that an asset is free and clear of any prior terms, conditions, ownership, and obligations. It is imperative paperwork that serves the purpose of change of ownership and transfer of title. Although such deeds typically find use in property, asset, and mortgage-based matters, they offer the advantage of being inexpensive and serving as legal proof in court proceedings. Additionally, while drafting this document, it is essential to ensure that it is clear and understanding, covering all related issues and contingencies.

Furthermore, companies generally use a deed of release of employment to mitigate and settle disputes with their current and former employees. A usual benefit of such release deeds is that every party involved in the process can express their views and conditions and create an agreement that readily satisfies both parties.

In case of a breach of the release deed, both parties are equally free to take legal actions against the other to recover damages. Many deeds of release templates are available online to check the elements of the agreement. Consulting an expert on the subject is strongly advised before creating or enacting a release deed. Furthermore, a release deed is only valid when both parties have signed the terms with proper witnesses. All legal documents and other paperwork necessary to support the agreement are completed, appropriately registered, and stamped with the required stamp duty. Additionally, this deed of release template includes the following elements, including:

  • The parties involved in the agreement
  • The date and reason for termination
  • Consideration provided in exchange
  • Confidentiality
  • Release and discharge clause
  • Governing law
  • Signatures
Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series)

–>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​Financial Modeling & Valuation Course Bundle​ (25+ hours of video tutorials with step by step McDonald’s Financial Model). Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.

Partial Deed Of Release

The release deed document has a clause of the partial deed of release. Furthermore, this clause enables a mortgagee to release a specific portion from the lien in exchange for a certain amount of funds by the mortgagor. Lenders commonly use this type of partial deed in construction loans. Additionally, it can be established using a standard form of release under a security agreement. Hence, when a borrower pays a certain amount, the creditor releases some portion of the collateral.

Furthermore, a lender may demand proof of payment, an appraisal form, and a valid reason letter for the partial release. Consequently, the borrower’s payment amount is reduced from the principal amount, which allows the bank to restructure the debt terms based on the new amount. It may diminish the monthly payment or decrease the loan term. Moreover, this partial deed will specify the portion of the property being released from the lien and includes conditions or restrictions associated with the act.


Let us understand the concept better with the help of examples.

Example #1

Let’s assume Julia applied for a business loan. She needed a loan of $900,000 for this visit to the local bank, and the bank explained that they could provide the debt, but she had to submit collateral. So Julia went ahead and kept her two-bedroom home as collateral.

Julia received the loan for four years with a monthly installment calculated on an interest rate that the bank has offered the loan for. Julia worked day and night in her business expansion and paid all the EMIs on time. Finally, after four years, she visits the bank and asks for the deed of release. Besides, this document is significant to her because it removes the prior agreement and frees both parties (Julia and the bank) from the legal obligation.

It is a simple example of a deed of release of a mortgage. Suppose Julia still needed to receive the document. She would require proof that the loan terms were met and no further liabilities were left.

Example #2

Suppose April and June are two sisters. When their father died, there was no will present. Both sisters inherited their father’s house as legal heirs. April, a surgeon earning well in her life, decides she has no interest in her father’s property and is happy to give it to June.

April can execute this through a deed of release of property. Then, with the help of the document, there will be a legal transfer of ownership and title from April to June, making the latter the sole owner of the property. It is one of the prominent uses of a release deed.


The format of the release deed varies depending on the specific requirements of the jurisdiction where the property is located and the parties’ preferences. However, the structure of this document includes elements like:

  1. Heading- It explains the title and proper name of the agreement.
  2. Description – Block letters describe the deed thoroughly with title, purpose, and objectives.
  3. Date and place of execution – The location and date where the agreement will be finalized. It is an essential component relevant from the perspective of law.
  4. Parties’ name and description – It clearly states the name of the parties involved in the agreement with an accurate description.
  5. Recitals – Elaborations of the deed and property for which it is done.
  6. Property Description – The property is described with proper supporting documents and identification to present for registration.
  7. Terms and conditions – It explains the terms and conditions that bind the parties with general rules and the special arrangements, rules, and requirements.
  8. Exceptions and reservations – This component mentions the specific rights held by the transferor agreed upon by the transferee.
  9. Undertakings – The agreement is under seal, and the parties involved promise the truth regarding the property.
  10. Parties’ signature and witnesses – The parties’ signature in the presence of witnesses is most important during the deed execution. It is to observe that both parties adhere to the deed obligations.
  11. Annexure or schedule – A deed is only complete if the particulars required by the registration law for the property are provided in the schedule as an attachment to the deed.

Frequently Asked Questions (FAQs)

1. How long does a deed of release take?

The time taken to complete the release deed varies depending on several factors, such as the complexity and the efficiency of the parties involved. However, the timeframe for completing the process can vary and may take a few days, several weeks, or even months.

2. Can a deed of release be canceled?

The parties involved in the deed have the right to file a suit in a court of law to cancel it, but it will only be considered if any remaining undue influences or traces of duress, such as coercion, fraud, or threats in the obligations. However, the deed cannot be canceled quickly in a standard scenario.

3. Do you need a deed of release for a debenture?

Yes, this document is necessary for the release of a debenture. When a debenture is issued, it is often secured by collateral, such as property or assets. Therefore, this document would prove that the debt has been fully paid and that the lien is being released.

This article has been a guide to Deed of Release and its meaning. Here, we explain its format, examples, and partial deed of release. You may also find some useful articles here –

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *