Lien Release Document

Lien Release Document Template for Malaysia

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Key Requirements PROMPT example:

"I need a Lien Release Document for releasing a construction lien on my commercial property in Kuala Lumpur, following full payment of RM 2.5 million to the contractor on January 15, 2025."

Document background

The Lien Release Document is a crucial legal instrument in Malaysian business and property transactions, used when a lien holder wishes to formally relinquish their security interest in property or assets. This document becomes necessary when the underlying debt or obligation that gave rise to the lien has been satisfied, or when parties agree to release the lien for other valid considerations. The document must comply with Malaysian legal requirements, including those under the Contracts Act 1950, National Land Code 1965, and where applicable, the Companies Act 2016. A properly executed Lien Release Document typically includes identification of the original lien, description of the property being released, confirmation of payment or satisfaction of obligations, and appropriate execution formalities. It serves as conclusive evidence that the property is free from the specified encumbrance and can be relied upon for future transactions.

Suggested Sections

1. Header Information: Date, parties' names and addresses, reference numbers

2. Subject Line: Clear identification of document as Lien Release

3. Original Lien Reference: Details of the original lien including date, parties, and registration details

4. Property Description: Clear identification of the property or asset that was subject to the lien

5. Release Declaration: Express statement releasing all rights and interests in the property

6. Consideration Statement: Acknowledgment of receipt of payment or other consideration

7. Authorization Statement: Confirmation of authority to execute the release

8. Execution Block: Signature blocks with witness requirements

Optional Sections

1. Partial Release Clause: Used when only a portion of the property or security interest is being released

2. Conditional Release Terms: Required when the release is subject to certain conditions being met

3. Indemnification Clause: May be included when additional protection is required by either party

4. Further Assurance Clause: Used when additional documentation or actions may be required in the future

5. Governing Law: While Malaysian law is implied, may be explicitly stated for clarity

6. Notice Details: Required when ongoing obligations or conditions exist

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property or assets being released

2. Schedule B - Original Lien Documentation: Copies or details of the original lien registration documents

3. Schedule C - Payment Details: If applicable, details of the settlement or payment that led to the release

4. Schedule D - Corporate Authorizations: When required, corporate resolutions or authorizations for the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 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

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Real Estate

Construction

Banking and Financial Services

Manufacturing

Maritime

Automotive

Agriculture

Mining

Oil and Gas

General Commerce

Relevant Teams

Legal

Finance

Property Management

Risk and Compliance

Operations

Treasury

Corporate Secretarial

Credit Management

Asset Management

Real Estate

Relevant Roles

Legal Counsel

Property Manager

Finance Director

Company Secretary

Credit Manager

Risk Manager

Corporate Lawyer

Real Estate Manager

Compliance Officer

Operations Manager

Chief Financial Officer

Contract Administrator

Asset Manager

Treasury Manager

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