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Release Of Lien Document

Release Of Lien Document Template for Indonesia

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Key Requirements PROMPT example:

Release Of Lien Document

"I need a Release of Lien Document for a residential property in Jakarta, where Bank Central Asia has agreed to release their security interest following full loan repayment scheduled for March 15, 2025."

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Document background
The Release Of Lien Document is a crucial legal instrument in Indonesian property and security law, used when a lien holder needs to formally relinquish their security interest in a property. This typically occurs after full payment of a debt or satisfaction of obligations secured by the property. The document must comply with Indonesian Civil Code provisions and the Law No. 4 of 1996 on Security Rights Over Land (Hak Tanggungan), requiring proper execution before a notary and subsequent registration with the National Land Office (BPN). The Release of Lien Document includes specific details about the original lien, property description, parties involved, and explicit release language. It's essential for clearing property titles and enabling property owners to deal with their property free from encumbrances.
Suggested Sections

1. Title and Date: Clear identification of the document as a Release of Lien and the date of execution

2. Parties: Identification of the Lien Holder (releasing party) and the Property Owner/Debtor, including their complete legal names, addresses, and any registration numbers for companies

3. Recitals: Background information including reference to the original lien, its registration details, and the reason for release (such as full payment of debt)

4. Property Description: Detailed description of the property subject to the lien, including certificate numbers, land registry details, and precise location

5. Release Statement: Clear and unequivocal statement releasing the lien and relinquishing all rights and interests in the property

6. Representations and Warranties: Basic statements confirming the lien holder's authority to release the lien and that no assignment or transfer of the lien has occurred

7. Execution: Signature blocks for all parties and notary certification requirements

Optional Sections

1. Consideration: Section detailing any payment or consideration for the release, used when the release is part of a settlement or partial payment arrangement

2. Further Assurances: Commitment to execute additional documents if needed, included when there might be additional administrative steps required

3. Governing Law: Explicit statement of applicable law, included when the property or parties involve multiple jurisdictions

4. Multiple Properties: Additional section for releasing liens on multiple properties, used when the release covers more than one property

5. Conditions Precedent: Any conditions that must be met before the release becomes effective, included when the release is contingent on certain events

Suggested Schedules

1. Property Details Schedule: Detailed technical description of the property including boundaries, certificate numbers, and land office registration details

2. Original Lien Documentation: Copies or references to the original lien documentation and registration certificates

3. Payment Confirmation: Evidence of debt satisfaction or payment receipts, if applicable

4. Corporate Authorization: If any party is a corporation, evidence of corporate authority to execute the release

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 | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking and Finance

Real Estate

Construction

Manufacturing

Infrastructure Development

Mining

Agriculture

Legal Services

Property Development

Corporate Services

Relevant Teams

Legal

Real Estate

Finance

Credit Administration

Risk Management

Compliance

Property Administration

Corporate Secretariat

Contract Management

Legal Operations

Relevant Roles

Legal Counsel

Property Manager

Real Estate Manager

Corporate Secretary

Finance Director

Credit Manager

Loan Officer

Compliance Officer

Risk Manager

Property Rights Administrator

Contract Administrator

Legal Operations Manager

Bank Manager

Notary Public

Land Registration Officer

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing civil matters including property rights, contracts, and obligations. Articles 1150-1160 specifically deal with security rights and liens.
Law No. 4 of 1996 on Security Rights Over Land (Hak Tanggungan): The primary legislation governing property liens and security interests in Indonesia, including the procedures for creating and releasing security rights over land and buildings.
Government Regulation No. 24 of 1997 on Land Registration: Regulates the registration of land rights and their encumbrances, including the registration of release of liens with the National Land Office (BPN).
Law No. 30 of 2004 on Notary Position: Governs the role of notaries in authenticating legal documents, including releases of liens, and establishes formal requirements for notarial deeds.
Minister of Agrarian Affairs Regulation No. 3 of 1997: Provides detailed implementing provisions for land registration, including specific forms and procedures for recording and releasing security rights.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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