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Unconditional Lien Release Form for Philippines

Unconditional Lien Release Form Template for Philippines

An Unconditional Lien Release Form under Philippine law is a legally binding document that irrevocably releases a claimant's rights to place or maintain a lien on a property for work performed or materials supplied. This document, governed by the Civil Code of the Philippines and relevant property laws, provides definitive evidence that payment has been received and that the claimant waives all rights to future claims or liens related to the specified work or project phase. The form serves as a crucial tool in construction and development projects, ensuring clear property titles and facilitating smooth financial transactions in the Philippine real estate and construction sectors.

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What is a Unconditional Lien Release Form?

The Unconditional Lien Release Form is a critical document in Philippine construction and real estate transactions, used when a contractor, subcontractor, or supplier has received payment for their work or materials and needs to formally relinquish their right to file a lien against the property. This document is particularly important in the Philippine context, where property rights and construction claims are governed by the Civil Code of the Philippines and the Property Registration Decree. The form should be used after payment has been received and verified, as it provides an unconditional and irrevocable release of lien rights. It typically includes specific details about the project, property, payment received, and the scope of the release. The document serves multiple purposes: it protects property owners from future claims, helps maintain clear property titles, and facilitates project closeout procedures in construction and development projects.

What sections should be included in a Unconditional Lien Release Form?

1. Title and Date: Clear identification of the document as an Unconditional Lien Release Form and the effective date

2. Party Information: Full legal names and addresses of the releasing party (lien claimant) and the party receiving the release

3. Project/Property Information: Detailed description of the project or property subject to the lien, including legal description and location

4. Payment Acknowledgment: Statement acknowledging receipt of payment, including the amount received

5. Release Language: Clear and unequivocal statement releasing all lien rights and claims

6. Signature Block: Space for signatures, notarization, and witness requirements

What sections are optional to include in a Unconditional Lien Release Form?

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

2. Warranty of Authority: Statement confirming the signing party's authority to execute the release, used when signing on behalf of a company

3. Prior Rights Reservation: Used when certain rights or claims need to be preserved despite the general release

4. Subcontractor Acknowledgment: Additional section for cases involving subcontractor claims or releases

5. Conditional Elements: Used when certain aspects of the release are subject to specific conditions, despite the general unconditional nature

What schedules should be included in a Unconditional Lien Release Form?

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

2. Schedule B - Payment Details: Breakdown of payments received and work completed, if applicable

3. Schedule C - Supporting Documents: Copies of relevant invoices, payments, or other supporting documentation

4. Schedule D - Related Liens: List of any related liens or claims being released, if multiple claims are involved

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

Jurisdiction

Philippines

Document Type

Release of Lien

Cost

Free to use

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