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Conditional Lien Release

Conditional Lien Release Template for Malaysia

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Key Requirements PROMPT example:

Conditional Lien Release

"I need a Conditional Lien Release for a commercial construction project in Kuala Lumpur, where we're the main contractor releasing our lien rights upon receipt of the final payment of RM 2.5 million, with the release becoming effective on March 15, 2025."

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Document background
The Conditional Lien Release is a critical document in Malaysian construction projects, used when contractors or subcontractors need to provide assurance of lien release while protecting their right to payment. This document type emerged from the need to balance property owners' interests in maintaining clear title with contractors' rights to secure payment for their work. Under Malaysian law, particularly influenced by the Construction Industry Payment and Adjudication Act 2012 (CIPAA) and the Contracts Act 1950, the Conditional Lien Release serves as a legally binding agreement that specifies the terms under which a lien holder will release their claims against a property. It is commonly used in progress payment situations, final payment scenarios, or when resolving payment disputes in construction projects. The document typically includes detailed information about the project, parties involved, payment amounts, and specific conditions that must be met for the release to become effective.
Suggested Sections

1. Parties: Identification of the Lien Holder (typically contractor/subcontractor) and the Property Owner/Principal

2. Background: Details of the original contract, project description, and circumstances leading to the lien

3. Definitions: Key terms used in the document including 'Payment Amount', 'Project', 'Lien Rights', 'Effective Date'

4. Amount of Claim: Specific amount of the lien claim being conditionally released

5. Project Identification: Detailed description of the project and property subject to the lien

6. Conditions for Release: Specific conditions that must be met for the release to become effective, typically payment terms

7. Scope of Release: Extent of the release and any rights reserved by the releasing party

8. Representations and Warranties: Statements confirming authority to release lien and other standard warranties

9. Execution: Signature blocks and attestation requirements

Optional Sections

1. Through Date Specification: Used when the release covers work only through a specific date rather than the entire project

2. Partial Release Provisions: Include when the release covers only a portion of the total lien amount

3. Subordinate Parties: Required when there are lower-tier contractors or suppliers whose rights are affected

4. Governing Law and Jurisdiction: Include when parties are from different states or when specific jurisdiction needs to be established

5. Notarization Requirements: Include when document requires notarization under local requirements or by agreement

Suggested Schedules

1. Schedule A - Property Description: Legal description of the property subject to the lien

2. Schedule B - Payment Details: Breakdown of the payment amount and payment method details

3. Schedule C - Original Contract Documents: List of relevant contract documents and dates

4. Appendix 1 - Progress Payment Certificates: Copies of relevant payment certificates if release is tied to specific progress payments

5. Appendix 2 - Supporting Documents: Any additional documentation supporting the lien claim and release conditions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions
























Clauses




















Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Civil Engineering

Architecture and Design

Property Management

Legal Services

Relevant Teams

Legal

Construction Management

Project Management

Finance

Commercial

Contract Administration

Risk Management

Site Operations

Development

Claims and Disputes

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Construction Director

Chief Financial Officer

Quantity Surveyor

Claims Manager

Risk Manager

Commercial Director

Development Manager

Site Supervisor

Project Coordinator

Legal Administrator

Industries






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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