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Material Lien Waiver for India

Material Lien Waiver Template for India

A Material Lien Waiver is a legal document used in India that provides protection to property owners and contractors by obtaining a waiver of lien rights from material suppliers. This document, governed by Indian contract law and property legislation, serves as a formal acknowledgment that payment has been received for materials supplied to a construction project and waives the supplier's right to file a lien against the property. It is particularly important in construction and development projects to ensure clear title to the property and protect against double payment claims.

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Material Lien Waiver

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What is a Material Lien Waiver?

A Material Lien Waiver is essential in Indian construction and development projects to manage risk and ensure clear property titles. This document is typically used when materials have been supplied to a construction project and payment has been made or is forthcoming. The waiver serves as legal evidence that the supplier has received payment and relinquishes their right to place a lien on the property for the materials provided. While India doesn't have specific mechanics' lien laws like some jurisdictions, these waivers are crucial under the Indian Contract Act, 1872, and the Transfer of Property Act, 1882. They can be either conditional (upon receipt of payment) or unconditional (after payment has been received), and are particularly important for progress payments and project completion documentation.

What sections should be included in a Material Lien Waiver?

1. Header Information: Date, project identification, property address, and document reference number

2. Party Details: Full legal names and addresses of the material supplier (waiving party), the contractor/subcontractor (if applicable), and the property owner

3. Project Information: Detailed description of the construction project, including project name, location, and any relevant permit numbers

4. Materials Description: Itemized list or general description of materials supplied to the project

5. Payment Information: Details of the payment received or to be received, including amount and payment period covered

6. Waiver Statement: Clear and unambiguous statement waiving lien rights for the specified materials and payment

7. Certification: Statement certifying that all suppliers and subcontractors have been or will be paid

8. Execution Block: Signature lines, date, and notary section if required

What sections are optional to include in a Material Lien Waiver?

1. Conditional Waiver Language: Used when the waiver is conditional upon receipt of payment, typically for progress payments

2. Retention Rights Reservation: Include when retaining rights for retention amounts not yet paid

3. Previous Rights Reservation: Used when preserving lien rights for previously supplied materials or unpaid amounts not covered by current payment

4. Warranty Statement: Optional statement regarding the warranty of materials supplied

5. Indemnification: Additional protection for owner/contractor against future claims

What schedules should be included in a Material Lien Waiver?

1. Schedule A - Material Details: Detailed itemization of materials supplied, including quantities, dates, and values

2. Schedule B - Payment History: Record of all payments received and pending for the project

3. Schedule C - Project Documents: References to relevant purchase orders, delivery receipts, and invoices

4. Appendix 1 - Supporting Documents: Copies of relevant invoices, delivery receipts, and purchase orders

5. Appendix 2 - Corporate Authority: If waiver is signed by corporation, evidence of signatory's authority

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

Jurisdiction

India

Publisher

Genie AI

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions






























Clauses




















Relevant Industries

Construction

Real Estate Development

Infrastructure

Manufacturing

Industrial Development

Commercial Property

Residential Property

Mining

Oil and Gas

Renewable Energy

Hospitality

Relevant Teams

Legal

Procurement

Construction

Project Management

Contract Administration

Risk Management

Property Management

Commercial Operations

Supply Chain

Real Estate Development

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Procurement Manager

Legal Counsel

Property Developer

Site Supervisor

Quantity Surveyor

Commercial Manager

Supply Chain Manager

Construction Director

Facilities Manager

Real Estate Manager

Development Director

Risk Manager

Industries







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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