Lien Waiver Form Template for Indonesia

A Lien Waiver Form under Indonesian law is a legally binding document used in construction and development projects to release claims or rights to place a lien on a property in exchange for payment. This document, governed by Indonesian Civil Code and relevant property laws, serves as a formal waiver of a party's right to file a lien against a property for work performed or materials supplied. The document includes detailed information about the project, parties involved, payment terms, and specific rights being waived. It must comply with Indonesian legal requirements, including proper notarization when required, and may need to be registered with relevant authorities depending on the nature of the property and rights involved.

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What is a Lien Waiver Form?

The Lien Waiver Form is a crucial document in Indonesian construction and development projects, used when parties need to formally release their rights to claim a lien on a property. This document becomes necessary when contractors, subcontractors, or suppliers receive payment for their work or materials and need to provide assurance that they will not make future claims against the property. The form must comply with Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) requirements and may need to follow specific formalities under Law No. 2 of 2014 on Notary Position. It typically includes project details, payment information, party identification, and clear waiver language. The document can be either conditional (pending payment) or unconditional (after payment receipt), and may be partial (for specific work phases) or final (for entire project completion).

What sections should be included in a Lien Waiver Form?

1. Project Information: Details of the construction project or work performed, including project name, location, and contract reference numbers

2. Lien Holder Information: Complete details of the party who is waiving their lien rights, including legal name, address, and role in the project

3. Property Description: Legal description of the property against which the lien rights are being waived

4. Payment Information: Details of the payment received or to be received, including amount, payment date, and payment method

5. Waiver Statement: Clear and unambiguous statement waiving lien rights, specifying whether it is conditional or unconditional, partial or final

6. Period Covered: Specific time period or work phase covered by the lien waiver

7. Certification: Statement certifying that all subcontractors and suppliers have been or will be paid

8. Execution Block: Signature blocks, notarization section, and date of execution

What sections are optional to include in a Lien Waiver Form?

1. Conditional Terms: Used when the waiver is conditional upon receipt of payment, specifying the conditions that must be met

2. Retained Rights: Include when the waiver holder wishes to retain certain rights or claims

3. Previous Payments: Added when there is a need to acknowledge prior payments received

4. Exceptions: Used to list any specific claims or rights that are excluded from the waiver

5. Witness Requirements: Added when local requirements or project specifications require witness signatures

6. Progressive Waiver Details: Included for projects with progress payments to specify which portion of work is being waived

What schedules should be included in a Lien Waiver Form?

1. Schedule A - Property Details: Detailed legal description of the property and relevant land registration details

2. Schedule B - Payment Schedule: Breakdown of payments received and/or pending, including dates and amounts

3. Schedule C - Scope of Work: Detailed description of the work performed for which the lien rights are being waived

4. Appendix 1 - Supporting Documents: Copies of relevant permits, contracts, or other supporting documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Release of Lien

Cost

Free to use

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