The Waiver and Release of Lien document is essential in UAE construction and development projects to maintain clear property titles and ensure smooth financial transactions. This document is typically used when a contractor, subcontractor, or supplier has received payment for their work or materials and needs to formally relinquish their right to file a lien against the property. In the UAE legal framework, particularly under the Civil Code and emirate-specific construction regulations, this document serves as crucial evidence that all payment obligations have been met and that no claims exist against the property. The document can be used for both progress payments (partial release) or final payments (full release), and it helps protect property owners while facilitating project completion and payment processes. The waiver must comply with UAE legal requirements and often requires specific formatting and content to be legally enforceable.
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1. Parties: Identification of the Contractor/Subcontractor (Lien Holder) and the Property Owner/General Contractor (Beneficiary of the Release)
2. Background: Brief description of the original contract, project details, and the circumstances leading to this waiver
3. Definitions: Key terms including Project, Property, Contract, Lien Rights, and Payment Amount
4. Acknowledgment of Payment: Confirmation of receipt of specified payment amount and details of the payment
5. Waiver and Release: Express waiver of lien rights and claims relating to the work performed
6. Scope of Release: Specific description of work, services, or materials covered by the release
7. Representations and Warranties: Confirmation that all subcontractors and suppliers have been paid and no outstanding claims exist
8. Authority to Execute: Confirmation of signatory's authority to execute the waiver on behalf of the releasing party
9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant emirate's courts' jurisdiction
1. Conditional Release Provisions: Used for progress payments where the release is conditional upon clearance of payment
2. Reservation of Rights: Used when certain rights need to be preserved, such as retainage or unbilled changes
3. Notarization Requirements: Added when document requires notarization for legal effectiveness or registration
4. Translation Clause: Required when document is bilingual Arabic/English, specifying which version prevails
5. Previous Payments Acknowledgment: Used in final releases to acknowledge all previous payments received
6. Indemnification: Added when additional protection against future claims is required
7. Attestation of No Outstanding Claims: Used in final releases to confirm no pending or potential claims exist
1. Schedule A - Property Description: Detailed legal description of the property subject to the lien release
2. Schedule B - Payment Details: Breakdown of payment amounts, including current payment and any retained amounts
3. Schedule C - Contract Information: Details of the original contract, including date, scope, and any amendments
4. Schedule D - Subcontractor List: List of all subcontractors and suppliers covered by the release
5. Appendix 1 - Supporting Documents: Copies of relevant payment receipts, certificates, or other supporting documentation
6. Appendix 2 - Authorization Documents: Corporate authorizations or powers of attorney proving authority to execute
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