A Waiver and Release of Lien is a crucial document in Indonesian construction and property development transactions, used when a contractor, subcontractor, or supplier has received payment for their services or materials and agrees to relinquish their right to place a lien on the property. This document is particularly important in the Indonesian legal context, where it operates under the Civil Code (KUHPerdata) and Construction Services Law (Law No. 2 of 2017). The waiver protects property owners from future claims while providing documentation of proper payment to service providers. It typically includes details of the payment received, property description, scope of work completed, and explicit language releasing all lien rights. The document is commonly used at project milestones or completion stages to ensure clear property titles and proper project closure.
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1. Parties: Identification of all parties involved - the lien holder (contractor/subcontractor/supplier) and the property owner or general contractor
2. Background: Context of the original contract, work performed, and the lien rights that arose
3. Definitions: Key terms used in the document including 'Lien', 'Property', 'Work Performed', 'Contract Price', and other relevant terms
4. Acknowledgment of Payment: Confirmation of the amount received and that it represents payment in full or agreed partial payment
5. Waiver and Release: Express waiver and release of all lien rights related to the work performed
6. Property Description: Detailed legal description of the property subject to the lien waiver
7. Representations and Warranties: Statements confirming the signatory's authority and that no assignment of lien rights has occurred
8. Governing Law: Specification that Indonesian law governs the document
9. Execution: Formal signing requirements including date and witness provisions
1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met
2. Subcontractor Confirmation: Include when there are subcontractors involved, confirming all subcontractor payments have been made
3. Notarization Requirements: Include when the document needs to be notarized for additional legal certainty
4. Partial Release Provisions: Used when the release applies only to a specific portion of work or specific time period
5. Indemnification: Include when additional protection is needed against future claims
6. Reservation of Rights: Used when certain rights need to be preserved despite the general release
1. Schedule A - Property Description: Detailed legal description of the property including certificates, boundaries, and registration details
2. Schedule B - Payment Details: Breakdown of payments received and reconciliation with contract amounts
3. Schedule C - Work Description: Detailed description of the work performed that is subject to the lien release
4. Appendix 1 - Supporting Documents: Copies of relevant invoices, payment receipts, and other supporting documentation
5. Appendix 2 - Original Lien Documentation: Copies of any filed lien notices or claims being released
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