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Unconditional Lien Waiver for India

Unconditional Lien Waiver Template for India

An Unconditional Lien Waiver under Indian law is a legally binding document that irrevocably waives a contractor's, subcontractor's, or supplier's right to place a lien on a property in exchange for payment received. Operating within the framework of Indian property and contract law, particularly the Transfer of Property Act, 1882, and the Indian Contract Act, 1872, this document provides property owners with assurance that no future claims can be made against their property for work completed or materials supplied up to the date of the waiver. Unlike conditional waivers, this type is effective immediately upon execution, regardless of any subsequent payment issues.

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Unconditional Lien Waiver

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What is a Unconditional Lien Waiver?

The Unconditional Lien Waiver is a critical document in Indian construction and real estate transactions, used when a contractor, subcontractor, or supplier has received payment for their work or materials and is willing to permanently waive their right to place a lien on the property. This document is typically used at various stages of a construction project, particularly upon receipt of progress payments or final payment. It provides property owners with protection against future claims and helps maintain clear property titles. Under Indian law, this waiver must comply with the Transfer of Property Act, 1882, and the Indian Contract Act, 1872, and may require proper stamping and registration depending on the value and jurisdiction. The document should clearly state the amount received, the scope of work covered, and include an unconditional waiver of all lien rights up to the date specified.

What sections should be included in a Unconditional Lien Waiver?

1. Project Identification: Details of the construction project including property address and project name

2. Parties: Identification of the waiving party (contractor/subcontractor/supplier) and the beneficiary of the waiver

3. Payment Acknowledgment: Specific acknowledgment of the payment received, including amount and date

4. Waiver Declaration: Clear and unconditional statement waiving all lien rights up to a specific date or payment amount

5. Scope of Waiver: Description of what rights are being waived and what work/materials the waiver covers

6. Certification: Statement certifying all subcontractors and suppliers have been paid

7. Execution: Signature block with date and notary section

What sections are optional to include in a Unconditional Lien Waiver?

1. Release of Additional Claims: Optional section waiving other claims beyond lien rights, used when a broader release is desired

2. Warranty of Authority: Statement warranting the signer's authority to execute the waiver, used for corporate entities

3. Continuing Work Provisions: Used when there is ongoing work not covered by this waiver

4. Representations and Warranties: Additional statements about the status of work and payments, used in complex projects

5. Reservation of Rights: Section preserving specific rights not being waived, used when certain claims need to be preserved

What schedules should be included in a Unconditional Lien Waiver?

1. Schedule A - Property Description: Detailed legal description of the property if not included in main text

2. Schedule B - Payment Details: Itemized list of payments received and work completed

3. Schedule C - Outstanding Claims: List of any preserved claims or rights not covered by the waiver

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

India

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

Architecture and Engineering

Building Materials and Supplies

Property Development

Facilities Management

Relevant Teams

Legal

Finance

Construction

Project Management

Operations

Procurement

Risk and Compliance

Real Estate

Contract Administration

Property Management

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Property Developer

Site Supervisor

Procurement Manager

Finance Manager

Operations Director

Construction Director

Real Estate Manager

Compliance Officer

Risk 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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