A Release of Covenant is essential in Indian property transactions where there is a need to remove existing restrictions or obligations attached to a property. This document is commonly used when development restrictions need to be lifted, when property use conditions are no longer relevant, or when parties agree to terminate previously established property-related obligations. The Release of Covenant must comply with Indian legal requirements, including the Transfer of Property Act 1882, the Registration Act 1908, and applicable state laws. It typically includes details of the original covenant, clear release language, and proper execution formalities. The document is particularly important in urban development scenarios, property redesignation, or when modernizing old property arrangements.
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1. Parties: Identifies all parties involved - the Releasor (party releasing the covenant) and the Releasee (party being released from the covenant)
2. Background: Recitals describing the original covenant, its date, registration details if any, and the context leading to its release
3. Definitions: Defines key terms used in the document, including property details, covenant specifics, and any technical terms
4. Details of Original Covenant: Specific description of the covenant being released, including its nature, scope, and obligations
5. Release Statement: Clear and unequivocal statement of release of the covenant and discharge of obligations
6. Consideration: Details of any consideration paid for the release, if applicable
7. Representations and Warranties: Statements confirming the authority to release the covenant and that no third-party rights are affected
8. Governing Law: Specifies that Indian law governs the release
9. Execution: Signature blocks and execution formalities
1. Indemnification: Used when there's a need to protect against future claims related to the released covenant
2. Third Party Rights: Include when the release might affect rights of parties not directly involved in the release
3. Partial Release: Required when only part of the covenant is being released while other parts remain in force
4. Registration Details: Include when the release requires registration under the Registration Act
5. Succession: Include when the release needs to bind successors and assigns
1. Property Description: Detailed description of the property affected by the covenant
2. Original Covenant Document: Copy or extract of the original covenant being released
3. Title Documents: Relevant property title documents proving ownership and authority to release
4. Registration Details: Details of registration if the original covenant was registered
5. Payment Details: If consideration is paid, schedule detailing payment terms and conditions
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