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Conditional Release Of Lien for Hong Kong

Conditional Release Of Lien Template for Hong Kong

A legal document governed by Hong Kong law that provides for the conditional release of a lien or charge over property, subject to specific conditions being met. The document outlines the terms under which the lien holder agrees to release their security interest in the property, typically involving payment terms, completion of work, or other specific conditions. It incorporates relevant provisions from Hong Kong's Conveyancing and Property Ordinance and other applicable legislation, ensuring proper protection for all parties while facilitating the eventual clear title to the property.

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Conditional Release Of Lien

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What is a Conditional Release Of Lien?

The Conditional Release of Lien is a crucial document in Hong Kong's property and construction sectors, used when a lien holder agrees to release their security interest subject to specific conditions being met. This document type is particularly relevant in construction projects, property developments, and financial transactions where liens have been placed on property as security for payment or performance. The document must comply with Hong Kong's legal requirements, particularly the Conveyancing and Property Ordinance and Building Ordinance. It typically includes detailed information about the original lien, property description, conditions for release, and the release mechanism. The conditional nature of the release provides protection for the lien holder while offering a clear path to lien removal for the property owner or debtor.

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

1. Parties: Identification of the Lien Holder and the Property Owner/Debtor

2. Background: Description of the original lien, including date of creation, amount, and property affected

3. Definitions: Key terms used in the document including 'Lien', 'Property', 'Conditions', 'Release Date'

4. Lien Details: Specific details of the lien being conditionally released, including registration details if applicable

5. Conditions for Release: Clear statement of all conditions that must be met for the release to become effective

6. Release Mechanism: Process and procedure for how the release will be effected once conditions are met

7. Representations and Warranties: Statements by both parties regarding their authority and capacity to enter into the agreement

8. Governing Law: Confirmation that Hong Kong law governs the document

9. Execution: Signature blocks and execution formalities

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

1. Partial Release Provisions: Include when the release applies to only part of the property or lien amount

2. Time Limits: Include when conditions must be met within specific timeframes

3. Dispute Resolution: Include when parties want to specify particular dispute resolution mechanisms

4. Further Assurances: Include when additional documentation or actions may be required post-release

5. Notices: Include when formal notice requirements are needed for certain actions

6. Surviving Obligations: Include when certain obligations continue after the release

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

1. Property Description: Detailed legal description of the property subject to the lien

2. Original Lien Documentation: Copies of the original lien registration or documentation

3. Payment Schedule: If release is conditional on payments, schedule of required payments

4. Release Form: Form of final release to be executed when conditions are met

5. Required Notices: Forms of any required notices to be given under the agreement

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

Hong Kong

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
























Clauses























Relevant Industries

Construction

Real Estate

Property Development

Banking and Finance

Infrastructure

Commercial Property

Residential Property

Industrial Development

Engineering

Architectural Services

Relevant Teams

Legal

Construction

Property Management

Finance

Risk and Compliance

Commercial

Project Management

Operations

Contract Administration

Corporate Secretarial

Relevant Roles

Construction Manager

Property Developer

Real Estate Attorney

Project Manager

Finance Director

Contract Administrator

Legal Counsel

Property Manager

Construction Site Supervisor

Risk Manager

Commercial Director

Development Manager

Company Secretary

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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