Partial Lien Release Template for Indonesia

A Partial Lien Release is essential in Indonesian property transactions where a portion of mortgaged property needs to be freed from encumbrance while maintaining security over the remainder. This document is commonly used in development projects, property subdivisions, or partial property sales where the original security holder agrees to release their rights over a specific portion. The document must comply with Indonesian law, particularly Law No. 4 of 1996 on Land Mortgage (Hak Tanggungan) and related regulations. It requires notarization and registration with the National Land Office (BPN) to be legally effective. The Partial Lien Release includes specific details about the property being released, the remaining security, and necessary representations to ensure legal validity. It's particularly important in scenarios involving phased developments, partial property sales, or restructuring of security arrangements.

1. Date and Parties: Identification of the date and all parties involved, including the lienholder, property owner, and any other relevant parties

2. Recitals: Background information including reference to the original security document, its registration details, and the reason for the partial release

3. Definitions: Key terms used in the document, including references to the original security document, property descriptions, and technical terms

4. Released Property Description: Detailed description of the specific portion of the property being released from the lien, including exact measurements and boundaries

5. Remaining Security: Clear statement of the portion of the property that remains subject to the lien and confirmation that the original security document remains in effect for that portion

6. Release Declaration: Formal statement releasing the specified portion of the property from the lien

7. Representations and Warranties: Statements by the lienholder regarding their authority to release the lien and the validity of the release

8. Execution: Signature blocks for all parties and notarial certification requirements