A Release of Lien Document is essential in New Zealand business transactions where a party needs to formally relinquish their security interest in property. This document is commonly used when a debt or obligation has been satisfied, requiring the lien holder to release their claim. The document must comply with New Zealand legislation, including the Personal Property Securities Act 1999 and Property Law Act 2007. A Release of Lien Document typically includes detailed information about the original lien, property description, parties involved, and explicit release language. It's particularly important in construction projects, property sales, and financial transactions where liens need to be cleared to facilitate further dealings with the property.
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1. Identification of Parties: Full legal names and addresses of the Lien Holder (Releasor) and the Property Owner (Releasee)
2. Property Description: Detailed description of the property that was subject to the lien, including legal description, street address, or specific identification of personal property
3. Original Lien Details: Information about the original lien including date of recording, amount, and registration details
4. Consideration Statement: Statement of the consideration received for releasing the lien
5. Release Declaration: Clear statement releasing and discharging the lien and property from all claims
6. Execution Block: Signature blocks for the lien holder, including space for witness or notary acknowledgment
1. Partial Release Terms: Used when only a portion of the original lien is being released, specifying which part remains in effect
2. Conditional Release Terms: Used when the release is subject to specific conditions being met
3. Representations and Warranties: Additional statements confirming the lien holder's authority to release and that no assignment of the lien has occurred
4. Governing Law: Specific reference to New Zealand law and jurisdiction, particularly important for international parties
5. Further Assurances: Commitment to execute additional documents if needed to perfect the release
1. Schedule A - Property Description: Detailed legal description of the property if too lengthy for main document
2. Schedule B - Original Lien Documentation: Copies or details of the original lien documentation and registration
3. Schedule C - Payment Details: If applicable, breakdown of payments or consideration given for the release
4. Appendix 1 - Supporting Documents: Any additional documentation evidencing authority to release or supporting the release
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