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.
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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
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
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
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