Document background
The Waiver and Release of Lien is a crucial document in German construction and property development projects, used when a party holding lien rights (such as a contractor or supplier) has received payment and agrees to relinquish their security interest in the property. This document is particularly important in construction projects where multiple contractors and suppliers are involved, as it helps maintain clear property titles and facilitate project completion. Under German law, specifically the BGB and construction regulations, the document must include precise property descriptions, payment confirmations, and explicit waiver language. It serves as protection for property owners against double payment claims and helps contractors document proper payment receipt. The document is commonly used at project milestones or completion stages, often as part of the final payment process.
