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Satisfaction And Release Of Lien Template for England and Wales

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Key Requirements PROMPT example:

Satisfaction And Release Of Lien

"I need a Satisfaction And Release Of Lien to acknowledge full payment of £75,000 from ABC Properties Ltd for construction works completed at 123 High Street, London, and to release all claims against the property."

Document background
A Satisfaction And Release Of Lien is essential when concluding financial obligations secured against property in England and Wales. This document is typically used after full payment has been received for works, services, or materials provided, and the lien holder wishes to formally release their security interest. It includes specific details about the original lien, property description, payment received, and explicit release language. The document protects both parties by providing clear evidence that the debt has been satisfied and the property is free from the specific encumbrance. It is particularly important in property transactions where clean title is required.
Suggested Sections

1. Parties: Identification of lien holder and property owner

2. Background: Details of original lien, including date, amount, and property description

3. Definitions: Key terms used in the document

4. Acknowledgment of Payment: Confirmation that payment has been received in full

5. Release Statement: Formal release of all claims and rights under the lien

6. Execution: Signature blocks and witnessing requirements

Optional Sections

1. Partial Release: Used when only part of the lien is being released, applicable when payment covers only portion of claim

2. Warranty of Authority: Confirming signatory's authority to release lien, used when signatory is acting on behalf of company/organization

3. Indemnification: Protection against future claims, used when additional security is required

Suggested Schedules

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

2. Payment Schedule: Details of payments made and dates, used for complex payment arrangements

3. Original Lien Documentation: Copies of original lien documents as appendix

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























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Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - Primary legislation governing construction contracts and payment mechanisms, particularly relevant for construction liens

Land Registration Act 2002: Primary legislation governing the registration of land and interests in land in England and Wales, crucial for determining the status of liens on registered property

Law of Property Act 1925: Fundamental legislation establishing core principles of property law in England and Wales, including rules about interests in land and security rights

Scheme for Construction Contracts Regulations 1998: Secondary legislation providing detailed rules for construction contracts, including payment provisions and dispute resolution procedures

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest on late payments in commercial transactions, relevant for payment-related aspects of lien releases

Common Law Principles on Liens: Established case law principles regarding possessory and equitable liens, including creation, enforcement, and release

Priority Rules: Legal principles determining the order of priority between competing interests in property, including liens and other security interests

English Contract Law Principles: Common law principles governing contract formation, validity, and enforcement applicable to lien release agreements

Companies Act 2006: Primary legislation governing company operations in the UK, relevant when any party to the lien release is a registered company

Insolvency Act 1986: Legislation governing insolvency proceedings and the validity of transactions prior to insolvency, including potential void preferences

Land Charges Act 1972: Legislation governing the registration of certain interests in unregistered land, including specific types of liens

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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