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Lien Release Agreement

Lien Release Agreement Template for Australia

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Key Requirements PROMPT example:

Lien Release Agreement

"I need a Lien Release Agreement to release a construction lien over a commercial property in Sydney, following full payment of AUD 2.5 million received on January 15, 2025, with the release to be registered on the PPSR."

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Document background
The Lien Release Agreement is a crucial document in Australian business and property transactions where security interests need to be discharged. It is commonly used when a debt or obligation has been satisfied, and the lien holder needs to formally relinquish their rights over the property that served as security. The agreement complies with Australian federal and state legislation, including the Personal Property Securities Act 2009 (Cth) and state-specific property laws. This document is essential in various contexts, from construction projects to equipment financing, and provides clear evidence that the security interest has been released. The Lien Release Agreement typically includes details of the original lien, property description, confirmation of satisfaction of obligations, and explicit release language, ensuring all parties have clarity and legal certainty regarding the discharge of the security interest.
Suggested Sections

1. Parties: Identifies and defines the Lien Holder and the Property Owner/Debtor as parties to the agreement

2. Background: Recitals establishing the context of the original lien, including reference to the underlying obligation and property description

3. Definitions: Defines key terms used throughout the agreement, including 'Lien', 'Property', 'Original Obligation', and 'Effective Date'

4. Acknowledgment of Original Lien: Details of the original lien including date of creation, amount secured, and property encumbered

5. Release and Discharge: Core provision releasing and discharging the lien and relinquishing all rights of the lien holder

6. Representations and Warranties: Statements confirming the lien holder's authority to release the lien and that no assignment or transfer of the lien has occurred

7. Further Assurances: Commitment to execute additional documents if needed to effect the release

8. Governing Law: Specifies that Australian law governs the agreement

9. Execution: Signature blocks and execution provisions

Optional Sections

1. Payment Acknowledgment: Include when the release is given in exchange for payment, acknowledging receipt of the agreed sum

2. Partial Release Provisions: Required when only a portion of the property or obligation is being released from the lien

3. Conditions Precedent: Include when the release is subject to specific conditions being met

4. Surviving Obligations: Include when certain obligations survive the release

5. Release of Related Rights: Include when additional related rights or collateral security interests are also being released

6. Indemnification: Include when one party needs to indemnify the other against future claims

7. Confidentiality: Include when parties wish to keep the terms of the release confidential

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the property that was subject to the lien

2. Original Lien Documentation: Copies of the original lien documentation being released

3. Payment Details: If applicable, schedule detailing any payment made in consideration for the release

4. Related Security Interests: If applicable, list of related security interests also being released

5. PPSR Registration Details: Details of Personal Property Securities Register recordings to be removed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Construction

Real Estate

Banking and Finance

Manufacturing

Automotive

Mining

Maritime

Agriculture

Transportation

Logistics

Relevant Teams

Legal

Finance

Property Management

Credit and Collections

Risk and Compliance

Operations

Real Estate

Contract Administration

Corporate Secretariat

Asset Management

Relevant Roles

Legal Counsel

Property Manager

Contract Administrator

Finance Manager

Construction Project Manager

Credit Manager

Risk Manager

Company Secretary

Compliance Officer

Asset Manager

Security Trustee

Collections Manager

Real Estate Manager

Operations Manager

Industries
Personal Property Securities Act 2009 (Cth): Federal legislation governing the registration, priority and enforcement of security interests in personal property, including liens. Essential for ensuring proper release and discharge of security interests.
Property Law Act 1958: State legislation governing property rights and interests, including the creation and discharge of property-related encumbrances such as liens.
Australian Contract Law (Common Law): Common law principles governing contract formation, validity, and enforcement, ensuring the lien release agreement meets basic contractual requirements.
Building and Construction Industry Security of Payment Act: State-based legislation (varies by state) dealing with construction liens and payment security in the building industry, relevant if the lien relates to construction work.
Corporations Act 2001 (Cth): Federal legislation relevant when dealing with corporate entities and their capacity to grant or release security interests.
Competition and Consumer Act 2010 (Schedule 2 - Australian Consumer Law): Federal legislation containing consumer protection provisions that may be relevant if the lien release involves consumer transactions or unfair contract terms.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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