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Mechanics Lien Release Form

Mechanics Lien Release Form Template for Indonesia

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Key Requirements PROMPT example:

Mechanics Lien Release Form

"I need a Mechanics Lien Release Form for my completed commercial building project in Jakarta, where I'm the general contractor releasing all lien rights after receiving final payment of IDR 2.5 billion from the property owner PT Indo Development."

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Document background
The Mechanics Lien Release Form is a crucial document in Indonesian construction and property development projects, used when a contractor, subcontractor, or supplier has received payment for their work or materials and needs to formally release their right to file a lien against the property. This document is essential for maintaining clear property titles and facilitating proper project closeout procedures. Under Indonesian law, particularly the Construction Services Law (Law No. 2 of 2017) and related regulations, contractors have the right to secure their payment through liens, but must release these rights once payment is received. The form serves as evidence that all financial obligations have been met and that the contractor relinquishes any future claims related to the specified work or materials. It's particularly important in construction project management and real estate transactions where clear title to the property is essential.
Suggested Sections

1. Title and Date: Clear identification of the document as a Mechanics Lien Release Form and the date of execution

2. Project Information: Details of the construction project, including project name, address, and property description

3. Party Identification: Full legal names and addresses of the contractor/subcontractor releasing the lien and the property owner

4. Work Description: Brief description of the work performed or materials furnished

5. Payment Acknowledgment: Confirmation of receipt of payment and the amount received

6. Release Statement: Formal statement releasing rights and claims to the mechanics lien

7. Execution Block: Signature lines, witness requirements, and notarization section

Optional Sections

1. Partial Release Statement: Used when the release only applies to a portion of the work or specific payment period

2. Conditional Release Language: Added when the release is conditional upon receipt of payment or other conditions

3. Waiver of Rights: Additional language waiving other related rights or claims beyond the lien

4. Reservation of Rights: Section preserving certain rights or claims not included in the release

5. Through-Date Statement: Specification of the date through which the release applies, used for progress payments

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property subject to the lien release

2. Schedule B - Payment Details: Breakdown of payments received and/or remaining amounts if partial release

3. Schedule C - Work Completion Certificate: Certificate confirming completion of work covered by the release

4. Appendix 1 - Supporting Documents: Copies of relevant permits, completion certificates, or payment proofs

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

alex.den.21@genieai.co
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Relevant Industries

Construction

Real Estate

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Legal

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Construction Manager

Project Manager

Contract Administrator

Legal Counsel

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Site Supervisor

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Real Estate Manager

Compliance Officer

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