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Construction Lien Release

Construction Lien Release Template for Germany

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Key Requirements PROMPT example:

Construction Lien Release

"I need a Construction Lien Release for a completed residential building project in Munich, where our company (Schmidt Bau GmbH) needs to release our lien after receiving full payment of €500,000 from the property owner on January 15, 2025."

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Document background
The Construction Lien Release is a crucial document in German construction law that formally terminates a contractor's or subcontractor's security interest in a property. This document becomes necessary when construction work has been completed and payment has been made, allowing the property owner to clear the title of any construction-related encumbrances. Under German law, contractors and subcontractors have the right to place a lien (Bauhandwerkersicherung) on a property to secure payment for their services. Once payment is received or other conditions are met, this release document must be properly executed to remove the lien from the property records. The document must comply with specific requirements under the German Civil Code (BGB) and local construction regulations, making it an essential tool in construction project closeout procedures.
Suggested Sections

1. Identification of Parties: Full legal names and addresses of the Lien Holder (typically contractor or subcontractor) and Property Owner, including any relevant registration numbers

2. Project Information: Details of the construction project including property address, land registry information (Grundbuch), and reference to the original construction contract

3. Lien Details: Specific information about the construction lien (Baubürgschaft/Bauhandwerkersicherung) being released, including its registration date and amount

4. Release Declaration: Formal statement of release (Verzichtserklärung) of the construction lien, clearly stating that the lien holder relinquishes all rights and claims

5. Confirmation of Payment: Acknowledgment of receipt of payment or other consideration for which the lien is being released

6. Execution: Date and signature blocks for all parties, with space for notarization if required

Optional Sections

1. Partial Release Provisions: Required when only a portion of the lien is being released, specifying which parts remain in effect

2. Conditional Release Terms: Used when the release is conditional upon certain events or actions, such as final payment clearance

3. Subordinate Liens: Required when dealing with multiple tiers of contractors or subcontractors, addressing the release of subordinate liens

4. Representations and Warranties: Additional assurances from the lien holder regarding the validity of the release and authority to execute

5. Governing Law Statement: While German law is implied, specific reference to applicable state construction laws may be needed

Suggested Schedules

1. Payment Evidence: Documentation proving payment has been received (payment confirmations, bank statements)

2. Original Lien Documentation: Copies of the original lien registration and related security documents

3. Property Documentation: Current land registry extract (Grundbuchauszug) showing the registered lien

4. Completion Certificate: If applicable, certificate confirming completion of the relevant construction work

5. Authorization Documents: Power of attorney or corporate resolutions proving authority to execute the release

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions




























Clauses


















Relevant Industries

Construction

Real Estate

Property Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Architecture and Engineering

Banking and Finance

Relevant Teams

Legal

Construction Operations

Project Management

Real Estate

Finance

Compliance

Risk Management

Property Management

Contract Administration

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Property Developer

Construction Site Manager

Real Estate Manager

Finance Director

Chief Operating Officer

Construction Company Owner

Property Owner

Compliance Officer

Risk Manager

Project Controller

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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