Conditional Release Of Lien Template for Canada

The Conditional Release of Lien is a critical document in Canadian construction law that helps manage the complex relationship between contractors, subcontractors, and property owners. It is commonly used when parties agree to release a construction lien subject to specific conditions, most often the receipt of payment. This document is particularly important in situations where staged or progressive payments are being made, or where parties need to facilitate project financing while protecting their legal rights. The document must comply with provincial legislation governing construction liens, such as the Construction Act in Ontario or equivalent acts in other provinces. It typically includes details of the original lien, property description, parties involved, and specific conditions for release. The Conditional Release of Lien provides a balanced approach to protecting both the lien holder's right to payment and the property owner's need to maintain clear title.

1. Lien Claimant Information: Full legal name and address of the party who filed the lien

2. Property Information: Legal description of the property against which the lien was registered

3. Original Lien Details: Registration number, date, and amount of the original lien

4. Project Information: Description of the project or improvements giving rise to the lien

5. Conditional Terms: Specific conditions that must be met for the release to become effective

6. Release Statement: Formal statement of release contingent upon the specified conditions

7. Execution Block: Signature requirements, including witness or notary provisions if required