The Conditional Waiver and Release of Lien is a critical document in German construction and property development projects, used when a contractor, subcontractor, or supplier agrees to waive their lien rights upon receiving specific payment. This document is particularly important in the German legal context, where construction liens (Bauhandwerkerpfandrecht) provide significant protection for contractors under the German Civil Code. The conditional nature of the release protects both parties: the contractor retains lien rights until payment is received, while the property owner receives assurance that the lien will be released upon making the specified payment. The document typically includes details of the original contract, property description, payment amount, and specific conditions for release. It's commonly used in construction projects, renovations, and property developments to ensure clear property titles and manage payment-related risks effectively.
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1. Parties: Identification of the releasing party (lienholder) and the party receiving the release, including full legal names and addresses
2. Background: Description of the original contract, work performed, property location, and the existence of the lien right
3. Definitions: Key terms used in the document, including 'Payment Amount', 'Property', 'Contract', 'Lien Rights', and 'Effective Date'
4. Payment Amount and Terms: Specific amount to be paid and payment method that will trigger the release
5. Conditional Release Statement: Clear statement that the release becomes effective only upon receipt of specified payment
6. Scope of Release: Detailed description of what rights are being waived and released upon payment
7. Representations and Warranties: Statements by the releasing party regarding authority to release and ownership of the lien rights
8. Governing Law: Specification of German law as governing law and jurisdiction
9. Execution: Signature blocks and execution requirements
1. Partial Release Provisions: Used when the release covers only a portion of the total lien rights or work performed
2. Subcontractor Provisions: Required when the release affects rights of subcontractors or when subcontractor releases are also needed
3. Previous Payments Acknowledgment: Include when there have been prior payments that need to be acknowledged
4. Reservation of Rights: Used when certain rights need to be preserved despite the release
5. Notarization Requirements: Include when notarization is required for the specific property or jurisdiction
6. Translation Clause: Required when the document needs to be in both German and another language
1. Schedule A - Property Description: Legal description of the property subject to the lien
2. Schedule B - Payment Details: Breakdown of payment amounts, including any previous payments and remaining amounts
3. Schedule C - Original Contract: Summary or copy of the original contract or work order
4. Schedule D - Lien Documentation: Copies of filed lien documents or notices
5. Appendix 1 - Release Conditions: Detailed list of all conditions that must be met for the release to become effective
6. Appendix 2 - Form of Payment Confirmation: Template for confirming receipt of payment and triggering release
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