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Lien Release Document for Indonesia

Lien Release Document Template for Indonesia

A Lien Release Document under Indonesian law is a formal legal instrument that effectively terminates and releases a security interest or lien held over property. The document must comply with Indonesian Civil Code requirements and relevant property laws, particularly Law No. 4 of 1996 on Land Mortgage and Law No. 42 of 1999 on Fiducia Security. It serves as official evidence that the underlying obligation has been satisfied and that the creditor no longer claims any security interest in the specified property. The document requires proper execution before a notary public and must be registered with relevant authorities to ensure legal effectiveness.

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What is a Lien Release Document?

The Lien Release Document is a crucial legal instrument in Indonesian secured lending and property transactions. It is used when a borrower has fully satisfied their secured obligations and the creditor needs to formally relinquish their security interest in the collateral property. This document type is governed by Indonesian law, particularly the Civil Code (KUHPerdata) and specific regulations concerning security interests. The Lien Release Document must include specific details about the original lien, the property involved, and clear statements of release. It requires proper execution before a notary public and subsequent registration with relevant authorities, such as the Land Registry Office for immovable property or the Fiducia Registration Office for movable assets. The document serves as conclusive evidence that the property is no longer encumbered and can be freely transferred or used as security for other obligations.

What sections should be included in a Lien Release Document?

1. Document Title and Date: Formal title 'Lien Release Document' (Surat Pelepasan Hak Tanggungan), date of execution, and document reference number

2. Identification of Parties: Full legal names, addresses, and capacities of the lienholder (creditor) and the property owner (debtor)

3. Lien Information: Details of the original lien including registration number, date of creation, and amount of the original secured obligation

4. Property Description: Detailed description of the property subject to the lien, including registration numbers and official property identifiers

5. Release Declaration: Formal statement releasing and discharging the lien and confirming full satisfaction of the underlying obligation

6. Authorization: Statement of the lienholder's authority to release the lien and confirmation that no other parties have rights over it

What sections are optional to include in a Lien Release Document?

1. Related Documents Reference: Used when there are multiple related security documents or liens being released simultaneously

2. Partial Release Statement: Include when only a portion of the secured property is being released from the lien

3. Governing Law Statement: While implied under Indonesian law, may be explicitly stated for additional clarity

4. Successor Rights: Include when there has been a change in the identity of the lienholder or property owner since the original lien was created

What schedules should be included in a Lien Release Document?

1. Property Documentation: Copies of relevant property certificates and registration documents

2. Original Lien Document: Copy of the original lien agreement or security document being released

3. Authority Documentation: Powers of attorney or corporate authorizations proving the signatory's authority to release the lien

4. Payment Confirmation: Evidence of full payment or satisfaction of the secured obligation (if applicable)

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

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses














Relevant Industries

Banking

Real Estate

Construction

Manufacturing

Agriculture

Mining

Infrastructure

Financial Services

Legal Services

Property Development

Relevant Teams

Legal

Finance

Credit Administration

Risk Management

Compliance

Real Estate

Corporate Secretariat

Documentation

Property Management

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Officer

Property Manager

Real Estate Manager

Loan Officer

Compliance Officer

Risk Manager

Corporate Secretary

Legal Manager

Transaction Manager

Security Documentation Specialist

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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