The Release Of Lien Document is a crucial instrument in Canadian construction and real estate transactions, used when a contractor, subcontractor, or supplier has received payment for their services or materials and agrees to remove their lien claim against a property. This document is essential for property owners to maintain clear title and for contractors to formally acknowledge payment receipt. The document must comply with provincial legislation such as the Construction Act (Ontario) or equivalent Builders' Lien Acts in other provinces. A properly executed Release of Lien Document includes specific details about the original lien, property description, parties involved, and confirmation of payment or other consideration received. It's commonly required for project completion, property sales, or refinancing transactions where clear title must be demonstrated.
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1. Identification of Parties: Full legal names and addresses of the Lien Claimant (releasing party) and the Property Owner/General Contractor (receiving party)
2. Property Description: Legal description of the property against which the lien was registered
3. Lien Details: Reference to the original lien including registration number, date, and amount
4. Consideration: Statement of the consideration received for releasing the lien
5. Release Statement: Formal statement releasing and discharging the lien
6. Certification: Statement certifying that the person signing has authority to release the lien
7. Execution: Signature blocks with dates and witness requirements
1. Partial Release Statement: Used when only a portion of the lien is being released, specifying which portion remains
2. Warranty of Title: Additional warranties that the lien holder has not assigned or transferred the lien to any other party
3. Indemnification: Added when the owner requires protection against future claims related to the released lien
4. Governing Law: Included when the property or parties are in different jurisdictions
5. Multiple Properties: Section needed when the lien release covers multiple properties
1. Schedule A - Property Description: Detailed legal description of the property when too lengthy to include in main document
2. Schedule B - Original Lien Documentation: Copies of the original lien registration documents
3. Schedule C - Payment Details: Breakdown of payments received when the release involves multiple payments or complex payment structures
4. Schedule D - Corporate Resolution: When required, authorization document proving signer's authority to release lien on behalf of corporation
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