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Mechanics Lien Release

Mechanics Lien Release Template for Philippines

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Key Requirements PROMPT example:

Mechanics Lien Release

"I need a Mechanics Lien Release for my completed residential construction project in Manila, where I received full payment of PHP 2,500,000 on January 15, 2025, and want to release all claims against the property owner's three-story house."

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Document background
A Mechanics Lien Release is a crucial document in the Philippine construction and real estate industry that provides legal certainty for property owners and contractors alike. It is typically used after the completion of construction work and receipt of payment, where the contractor or subcontractor formally surrenders their lien rights against the property. The document must comply with the Civil Code of the Philippines and related regulations, requiring proper execution, notarization, and registration with the Register of Deeds. This release is essential for clearing property titles and ensuring smooth real estate transactions, as it confirms that all construction-related claims have been satisfied. The document includes specific details about the original lien, property description, payment confirmation, and explicit release language.
Suggested Sections

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

2. Parties: Identification of the Lien Claimant (contractor/subcontractor) and the Property Owner

3. Property Description: Legal description of the property subject to the lien release

4. Original Lien Information: Details of the original mechanic's lien, including recording date, instrument number, and amount

5. Acknowledgment of Payment: Statement confirming receipt of payment and the amount received

6. Release Statement: Formal declaration releasing all lien rights against the property

7. Execution: Signature blocks for the lien claimant and notary public

Optional Sections

1. Partial Release Statement: Used when only a portion of the lien is being released, specifying the extent of the partial release

2. Conditional Release Language: Used when the release is conditional upon receipt of payment or other conditions

3. Warranty Statement: Optional warranties by the lien claimant regarding the work performed and payment received

4. Reservation of Rights: Used when the claimant wishes to preserve certain rights while releasing the lien

5. Related Projects Reference: Used when the release needs to reference multiple related construction projects or phases

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property if too lengthy for main document

2. Schedule B - Payment Details: Itemized list of payments received and remaining balances if applicable

3. Schedule C - Original Lien Documentation: Copies of the original lien filing documents and recordings

4. Appendix 1 - Supporting Documents: Any relevant supporting documents such as proof of payment or completion certificates

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

Construction

Real Estate

Property Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Architecture and Engineering

Building Materials

Construction Management

Relevant Teams

Legal

Construction Management

Project Management

Operations

Finance

Procurement

Contract Administration

Property Management

Real Estate Development

Risk Management

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Property Manager

Real Estate Developer

Construction Supervisor

Site Manager

Procurement Manager

Finance Director

Operations Manager

General Contractor

Subcontractor

Project Coordinator

Claims Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary legislation governing contracts, obligations, and real property rights, including provisions on construction liens and their release (particularly Articles 2241 and 2242 on preferred credits)
Presidential Decree No. 1746: Establishes the Construction Industry Authority of the Philippines (CIAP) and provides regulatory framework for construction activities, including requirements for contractors and lien rights
Republic Act No. 4566 (Contractors' License Law): Regulates licensing of contractors and provides framework for contractor rights and obligations, including mechanisms for securing and releasing liens
Rules of Court (Rule 141): Procedural rules governing the filing and release of liens, including requirements for notarization and registration
Property Registration Decree (P.D. No. 1529): Governs the registration of real property and encumbrances, including mechanics liens and their subsequent release
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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