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Release Of Lien Document

Release Of Lien Document Template for Malaysia

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Key Requirements PROMPT example:

Release Of Lien Document

"I need a Release of Lien Document for a commercial property in Kuala Lumpur, where our company has fully paid off a construction lien of RM 2.5 million, with the release to be effective from March 15, 2025."

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Document background
A Release of Lien Document is a crucial legal instrument in Malaysian property and construction law, used when a lien holder wishes to formally relinquish their security interest in a property. This document becomes necessary when a debt or obligation secured by a lien has been fully satisfied, or when parties have reached an agreement to release the lien. The document must comply with Malaysian legal requirements, particularly the National Land Code 1965 and state-specific land rules. It includes essential details such as the parties' information, property description, original lien details, and clear release language. The Release of Lien Document serves as official evidence that the property is free from the specified encumbrance and can be relied upon for future property transactions or financing.
Suggested Sections

1. Title and Date: Clear identification of the document as a Release of Lien and the effective date

2. Parties: Full legal names and addresses of the Lien Holder (Releasor) and Property Owner (Releasee)

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

4. Original Lien Information: Details of the original lien including date, amount, and registration information

5. Consideration: Statement of the consideration received for releasing the lien

6. Release Statement: Clear and unequivocal statement releasing all rights and interests in the property

7. Governing Law: Statement that the document is governed by Malaysian law

8. Execution: Signature blocks for all parties, including witnesses as required by Malaysian law

Optional Sections

1. Partial Release Statement: Used when only a portion of the lien is being released, with clear description of what portion remains

2. Conditions Precedent: Include when the release is conditional upon certain actions or payments

3. Representations and Warranties: Additional statements confirming the lien holder's authority and right to release the lien

4. Further Assurances: Commitment to execute additional documents if needed for full effect of the release

5. Previous Payments: Section detailing any previous payments made, used when there's a payment history relevant to the release

Suggested Schedules

1. Schedule A - Property Details: Detailed legal description of the property if too lengthy for main document

2. Schedule B - Payment History: If applicable, detailed breakdown of payments made leading to the release

3. Schedule C - Original Lien Documents: Copies of the original lien documentation being released

4. Appendix 1 - Supporting Documents: Any relevant supporting documents such as payment receipts or correspondence

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

Real Estate

Construction

Banking and Finance

Legal Services

Property Development

Infrastructure

Manufacturing

Commercial Property

Residential Property

Industrial Property

Relevant Teams

Legal

Real Estate

Property Management

Finance

Construction Management

Contract Administration

Credit and Collections

Corporate Secretarial

Land Administration

Risk Management

Relevant Roles

Property Lawyer

Real Estate Manager

Construction Project Manager

Legal Counsel

Property Developer

Finance Manager

Contract Administrator

Land Officer

Company Secretary

Credit Manager

Real Estate Agent

Construction Site Manager

Property Title Officer

Mortgage Officer

Industries
National Land Code 1965 (Act 56): The primary legislation governing land matters in Peninsular Malaysia, including provisions for liens, charges, and their release. Particularly relevant are Sections 241-242 regarding the discharge of charges.
Contracts Act 1950: Governs the formation and enforcement of contracts in Malaysia, including release agreements. Sections 76-77 are particularly relevant regarding the discharge of contracts.
Registration of Deeds Act 1952: Provides for the registration of deeds and other instruments affecting land, including releases of liens. Important for ensuring the release is properly recorded and enforceable.
Stamp Act 1949: Requires proper stamping of documents including releases and discharges. The release document must be appropriately stamped to be admissible in court.
Land Rules of the respective state: State-specific regulations that may affect the format and requirements for release of lien documents, as land matters can vary by state in Malaysia.
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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