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Partial Lien Release for Canada

Partial Lien Release Template for Canada

A Partial Lien Release is a legal document used in Canadian construction projects to release a portion of a contractor's or subcontractor's lien rights against a property, typically following receipt of partial payment for work completed. This document, governed by provincial construction and builders' lien legislation, allows for the progressive release of lien rights while maintaining claims for remaining unpaid work or materials. It serves as a crucial tool in construction payment management, providing property owners with assurance against double payment while allowing contractors to receive progress payments without surrendering all their lien rights.

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Partial Lien Release

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What is a Partial Lien Release?

The Partial Lien Release is essential in Canadian construction projects where work is completed and paid for in phases. This document becomes necessary when a contractor or subcontractor receives partial payment for their work and needs to release their lien rights proportionally. The document must comply with provincial construction lien legislation, which varies by jurisdiction but generally requires specific information about the project, parties involved, and the extent of the release. A Partial Lien Release typically includes details about the payment received, the specific work or time period covered, and clearly defines which lien rights are being released versus retained. It's commonly used in larger construction projects where progress payments are standard practice and helps maintain smooth payment flow while protecting all parties' interests.

What sections should be included in a Partial Lien Release?

1. Project Identification: Details of the construction project including address, legal description, and project name

2. Parties: Identification of the lien claimant and the party to whom the release is given

3. Payment Acknowledgment: Confirmation of the amount received and details of the payment being acknowledged

4. Scope of Release: Clear description of which portion of the lien rights are being released and which are being retained

5. Date of Work: Specification of the time period or portion of work to which the release applies

6. Affirmation: Statement affirming the truth of the information and the intent to be legally bound

7. Execution Block: Signature blocks, notary section, and date of execution

What sections are optional to include in a Partial Lien Release?

1. Conditional Release Language: Used when the release is conditional upon receipt of payment rather than based on payment already received

2. Through-Date Specification: Added when the release needs to specify a precise cut-off date for the released claims

3. Warranty Retention: Include when there are specific warranty obligations that need to be preserved despite the release

4. Subcontractor Confirmation: Added when confirmation of payments to subcontractors needs to be included

5. Trust Fund Acknowledgment: Required in jurisdictions with strong trust fund provisions in their lien legislation

What schedules should be included in a Partial Lien Release?

1. Schedule A - Property Description: Detailed legal description of the property if too lengthy for main document

2. Schedule B - Payment Details: Breakdown of payments received and remaining amounts if complex

3. Schedule C - Work Description: Detailed description of the specific work or materials to which the partial release applies

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 | Serial Founder & Legal AI Author

Jurisdiction

Canada

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions






























Clauses




















Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Public Works

Mining

Oil and Gas

Healthcare Construction

Relevant Teams

Legal

Finance

Construction Management

Project Controls

Contract Administration

Risk Management

Procurement

Accounts Payable

Operations

Compliance

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Construction Lawyer

Claims Manager

Finance Manager

Property Developer

Construction Site Supervisor

Procurement Manager

Risk Manager

Quantity Surveyor

Chief Financial Officer

Construction Controller

Compliance Officer

Industries








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