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Final Waiver Of Lien Template for Malaysia

A Final Waiver of Lien is a legally binding document used in Malaysian construction and development projects that serves as a formal relinquishment of a contractor's or subcontractor's right to place a lien on a property for work performed. Under Malaysian law, particularly the Construction Industry Payment and Adjudication Act 2012 (CIPAA), this document provides property owners and developers with assurance that no future claims will be made against the property for work completed and paid for. It typically includes detailed information about the project, confirmation of payment received, and specific terms of the waiver.

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What is a Final Waiver Of Lien?

The Final Waiver of Lien is a critical document in Malaysian construction projects that provides legal certainty for property owners and developers. It is typically executed upon completion of work and receipt of final payment, serving as evidence that all financial obligations have been met and that the contractor or subcontractor waives any future right to file a lien against the property. This document is particularly important in Malaysia's construction industry, where it helps prevent future disputes and ensures clear property titles. The Final Waiver of Lien should include specific project details, payment information, and clear waiver language that complies with Malaysian construction law, particularly the Construction Industry Payment and Adjudication Act 2012 (CIPAA). It is commonly required for project closeout, final payment release, and property transactions.

What sections should be included in a Final Waiver Of Lien?

1. Title and Date: Clear identification of the document as a Final Waiver of Lien and the effective date

2. Parties: Identification of the waiving party (contractor/subcontractor) and the beneficiary (owner/general contractor)

3. Project Information: Details of the construction project, including property address and project description

4. Payment Acknowledgment: Confirmation of receipt of final payment and the amount received

5. Waiver Declaration: Formal waiver of all lien rights related to the project

6. Scope of Waiver: Specific description of what claims and rights are being waived

7. Representations and Warranties: Statements confirming authority to waive liens and that all subcontractors/suppliers have been paid

8. Governing Law: Statement that the waiver is governed by Malaysian law

9. Execution: Signature blocks and witness requirements

What sections are optional to include in a Final Waiver Of Lien?

1. Conditional Provisions: Additional provisions making the waiver conditional upon specific events or payment clearance - used when payment is made by check or electronic transfer that needs to clear

2. Reservation of Rights: Section preserving certain rights or claims - used when specific claims are intentionally excluded from the waiver

3. Subcontractor Confirmation: Additional confirmations regarding payments to subcontractors - used in complex projects with multiple tiers of contractors

4. Notarization Block: Space for notary authentication - used when required by specific project requirements or financing arrangements

What schedules should be included in a Final Waiver Of Lien?

1. Schedule A - Project Details: Detailed description of the project scope and property details

2. Schedule B - Payment Summary: Breakdown of payments received and final payment amount

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers who have provided waivers (if applicable)

4. Appendix 1 - Supporting Waivers: Copies of lien waivers from subcontractors and suppliers (if applicable)

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Lien Waiver

Cost

Free to use

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