The Satisfaction Of Lien Document is a vital legal instrument used in Canadian construction law and real estate transactions. It becomes necessary when a previously registered construction or builder's lien needs to be removed from a property's title, typically after the lienholder has received payment or reached a settlement for their claim. The document must comply with specific provincial requirements, such as those outlined in Ontario's Construction Act or similar legislation in other provinces. The Satisfaction of Lien Document includes crucial information such as the original lien registration details, property description, lienholder information, and an unequivocal statement of discharge. This document is essential for clearing property titles, facilitating real estate transactions, and concluding construction projects, as most buyers, lenders, and title insurers require clear title before proceeding with transactions or financing.
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1. Lien Identification: Details of the original lien including registration number, date, and amount
2. Property Description: Legal description of the property against which the lien was registered
3. Lienholder Details: Full legal name and address of the party who registered the lien
4. Owner Details: Full legal name and address of the property owner
5. Discharge Statement: Clear statement that the lien is fully satisfied and discharged
6. Consideration: Statement of the payment or consideration received for the discharge
7. Execution: Signature block with date and witness requirements
1. Partial Discharge: Used when only a portion of the lien is being discharged
2. Multiple Lienholders: Additional details and signature blocks when multiple parties are discharging their liens
3. Successor/Assignment: Required when the current lienholder is different from the original registrant
4. Acknowledgment of Payment: Detailed acknowledgment of payments received when required by jurisdiction or parties
5. Release of Claims: Broader release language when the discharge is part of a settlement
1. Schedule A - Property Description: Detailed legal description of the property if too lengthy for main document
2. Schedule B - Original Lien Document: Copy or details of the original lien registration
3. Schedule C - Payment Details: Breakdown of payments received if discharge is based on multiple payments
4. Schedule D - Corporate Resolution: Required when lienholder is a corporation and jurisdiction requires proof of signing authority
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