The Final Lien Release Form is a critical document in Indian construction and development projects, used when a contractor, subcontractor, or supplier has completed their work and received final payment. It operates under the framework of the Transfer of Property Act, 1882, and the Indian Contract Act, 1872, providing legal finality to construction-related payment obligations. This document is typically executed upon project completion or phase completion when final payment has been made. The form includes detailed information about the project, parties involved, payment received, and specific property details. It serves as a crucial risk management tool for property owners and developers by preventing future claims against the property, while also providing contractors and suppliers with a formal mechanism to acknowledge payment receipt and project completion.
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1. Identification of Parties: Details of the Lien Holder (contractor/supplier) and the Property Owner/General Contractor
2. Project Information: Specific details about the construction project, including property address and project description
3. Payment Acknowledgment: Confirmation of receipt of final payment, including the amount received
4. Release Statement: Formal waiver and release of all lien rights related to the project
5. Property Description: Legal description of the property for which the lien rights are being released
6. Governing Law: Statement that the release is governed by Indian law
7. Signature Block: Space for authorized signatures, witness details, and notarization
1. Conditional Release Clause: Include when the release is contingent upon receipt of final payment
2. Reservation of Rights: Include when certain rights need to be preserved despite the general release
3. Warranty Statement: Include when the release includes ongoing warranty obligations
4. Prior Rights Waiver: Include when there's a need to explicitly waive rights from previous work periods
5. Indemnification: Include when additional protection against future claims is required
1. Schedule A - Payment Details: Detailed breakdown of payments received and final payment amount
2. Schedule B - Project Scope: Detailed description of work completed or materials supplied
3. Schedule C - Property Documents: Copies of relevant property documents and legal descriptions
4. Appendix 1 - Supporting Documents: Copies of invoices, payment receipts, and other relevant documentation
5. Appendix 2 - Previous Partial Releases: Copies of any partial lien releases previously executed for the project
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