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Conditional Lien Release Form for Canada

Conditional Lien Release Form Template for Canada

A Canadian Conditional Lien Release Form is a legal document used in construction projects across various Canadian provinces, each governed by their respective construction lien legislation. This document provides a conditional waiver of lien rights by a contractor, subcontractor, or supplier upon receipt of specified payment. The release becomes effective only when the payment has been received and cleared, offering protection to both the releasing party and the project owner. The document must comply with provincial requirements and typically includes project details, payment information, and specific conditions under which the release becomes effective.

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What is a Conditional Lien Release Form?

The Conditional Lien Release Form is a fundamental document in Canadian construction projects, used when contractors, subcontractors, or suppliers agree to release their lien rights against a property, conditional upon receiving specific payment. This document type is essential for maintaining smooth payment flows in construction projects while protecting the rights of all parties involved. The form must comply with the relevant provincial construction lien legislation, as lien laws vary across Canadian provinces. It typically includes detailed information about the project, parties involved, payment amount, and specific conditions that must be met for the release to become effective. The Conditional Lien Release Form is commonly used during progress payments or final payment stages of construction projects, providing security to property owners while ensuring that contractors and suppliers maintain their lien rights until payment is received and cleared.

What sections should be included in a Conditional Lien Release Form?

1. Project Identification: Details of the construction project including address, legal description, and project name

2. Parties: Identification of the releasing party (contractor/subcontractor/supplier) and the party to whom the release is given

3. Payment Amount: Specific amount of payment that triggers the release, including details of any progress payment or invoice numbers

4. Scope of Release: Description of what claims and time periods are covered by the release (e.g., through a specific date or for specific works)

5. Conditional Terms: Clear statement that the release is conditional upon receipt and clearance of payment

6. Execution: Signature blocks, date, and any required witness or notary sections

What sections are optional to include in a Conditional Lien Release Form?

1. Retention of Rights: Section specifically reserving rights for unsettled claims or disputed amounts (used when there are known outstanding issues)

2. Previous Payments: Acknowledgment of prior payments received (used in progress payment situations)

3. Statutory Declaration: Declaration confirming all subcontractors and suppliers have been paid (used for final payments or when required by contract)

4. Warranty: Warranty that the releasing party has authority to release the lien rights (used when signing on behalf of a company or where authority might be questioned)

What schedules should be included in a Conditional Lien Release Form?

1. Schedule A - Project Details: Detailed description of the project and property when the legal description is lengthy or complex

2. Schedule B - Payment Details: Itemized list of invoices or work covered by the release when multiple payments or complex payment structures are involved

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers covered by the release when multiple parties are involved

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions




























Clauses



















Relevant Industries

Construction

Real Estate

Infrastructure

Commercial Development

Residential Development

Industrial Construction

Mining

Oil & Gas

Healthcare Construction

Educational Facilities

Retail Development

Municipal Development

Relevant Teams

Legal

Finance

Construction

Project Management

Procurement

Risk Management

Accounts Payable

Contract Administration

Development

Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Construction Lawyer

Chief Financial Officer

Accounts Payable Manager

Project Coordinator

Construction Site Supervisor

Procurement Manager

Risk Manager

Claims Manager

Development Manager

Property Manager

Construction Finance 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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