Release Of Lien Document Template for Indonesia

You need a Release Of Lien Document when formally removing a security interest from property under Indonesian law. This legal instrument protects both lien holders and property owners by providing clear documentation that obligations secured by the property have been satisfied and the lien is released.

When do you need this document?

You require this document when mortgage payments are completed and you need to clear your property title with the National Land Office (BPN). Banks and financial institutions use this document to release security rights over land after loan repayment. Property developers need it to release construction liens once contractors are paid in full. Business owners require it when releasing security interests after trade debt satisfaction. You also need this document when settling estate matters where deceased persons had liens on property, or when corporate restructuring involves releasing security interests between related entities.

Key legal considerations

Your Release Of Lien Document must include precise identification of the original lien, including registration numbers and dates filed with BPN. The document requires detailed property descriptions matching official land certificates, complete party identification with legal names and addresses, and explicit release language stating the lien is fully discharged. You must ensure the release covers all aspects of the original security agreement and includes any accrued interest or additional obligations. The document should reference satisfaction of the underlying debt and confirm no remaining obligations exist. Witness requirements must be met according to Indonesian notarial law, and you need proper corporate authorization if business entities are involved.

Legal requirements in Indonesia

Under Indonesian Civil Code Articles 1150-1160 and Law No. 4 of 1996 on Security Rights Over Land, your Release Of Lien Document must be executed before a licensed notary public. The document requires registration with the National Land Office (BPN) within 30 days of execution according to Government Regulation No. 24 of 1997 on Land Registration. You must pay applicable registration fees and provide supporting documentation proving debt satisfaction. The release becomes effective only after BPN registration, not merely upon signing. Corporate parties need board resolutions or authorized signatory documentation. Foreign lien holders may require additional documentation proving legal standing in Indonesia. The document must be in Bahasa Indonesia with certified translations if parties are foreign entities.