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Final Waiver Of Lien Template for United Arab Emirates

A Final Waiver of Lien under UAE law is a legally binding document that releases any claims or rights to place a lien on a property in exchange for payment received for services or materials provided. This document, governed by UAE Federal Law No. 5 of 1985 (Civil Code) and relevant emirates-specific regulations, serves as a definitive confirmation that all payments have been received and that the contractor, subcontractor, or supplier waives their right to file any future liens or claims against the property. It provides crucial protection for property owners and developers while ensuring proper closure of construction-related financial obligations.

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What is a Final Waiver Of Lien?

The Final Waiver of Lien is a critical document in UAE construction and development projects, used when a contractor, subcontractor, or supplier has completed their work and received full payment. This document is particularly important in the UAE's rapidly developing construction sector, where multiple parties often work on large-scale projects simultaneously. The Final Waiver of Lien serves as a legal safeguard for property owners and developers, ensuring that no future claims can be made against the property for work completed or materials supplied. It typically includes detailed information about the project, parties involved, payment received, and specific rights being waived. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and any applicable emirate-specific regulations. It's commonly required before final payment release and project closure, providing certainty and protection for all parties involved.

What sections should be included in a Final Waiver Of Lien?

1. Project Identification: Details of the construction project including project name, location, and relevant contract numbers

2. Parties: Full legal identification of the waiving party (contractor/subcontractor) and the party receiving the waiver (owner/general contractor)

3. Payment Acknowledgment: Explicit acknowledgment of the receipt of payment, including the amount received and payment details

4. Waiver Declaration: Clear and unequivocal statement waiving all lien rights related to the project

5. Scope of Work: Description of the work performed under the contract for which the lien rights are being waived

6. Release of Claims: Statement releasing all claims, demands, and causes of action related to the work

7. Representations and Warranties: Confirmations that all subcontractors and suppliers have been paid and no outstanding claims exist

8. Governing Law: Specification that UAE law governs the waiver and its interpretation

What sections are optional to include in a Final Waiver Of Lien?

1. Conditional Provisions: Used when the waiver is conditional upon specific events or future payments

2. Subcontractor Declarations: Required when the waiving party is a general contractor, listing all subcontractors and confirming their payment status

3. Retention Release: Include when the waiver includes release of retention amounts

4. Exceptions and Reservations: Used when certain claims or rights are specifically reserved or excluded from the waiver

5. Previous Payments Schedule: Include when referencing a history of previous payments made under the contract

What schedules should be included in a Final Waiver Of Lien?

1. Schedule A - Project Details: Detailed description of the project, including contract numbers, dates, and scope of work

2. Schedule B - Payment Details: Breakdown of payments received, including dates and amounts

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers involved in the project, with their payment status

4. Appendix 1 - Supporting Documents: Copies of relevant payment receipts, completion certificates, or other supporting documentation

5. Appendix 2 - Legal Authority: Documentation proving the authority of the signing party to execute the waiver

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Waiver

Cost

Free to use

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