Partial Lien Release

Partial Lien Release Template for Germany

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Key Requirements PROMPT example:

"I need a Partial Lien Release under German law for releasing 2 hectares of industrial land from a larger 10-hectare property in Munich, where the original lien is held by Deutsche Bank, with the release to be effective March 15, 2025."

Document background

A Partial Lien Release is commonly used in German financing and real estate transactions when a portion of encumbered property or collateral needs to be released from an existing security interest. This typically occurs in development projects, property subdivisions, or when part of the secured debt has been repaid. The document must meet strict German legal requirements, including proper notarization and registration with the Grundbuchamt (land registry). It contains detailed descriptions of both the portion being released and the remaining encumbered property, ensuring legal certainty for all parties involved. The Partial Lien Release is particularly important in commercial real estate transactions and project financing, where phased releases of security are common as development progresses or debt is partially repaid.

Suggested Sections

1. Identification of Parties: Full legal names and addresses of the lienholder (Pfandgläubiger) and the property owner/debtor (Eigentümer/Schuldner)

2. Original Lien Details: Reference to the original lien document, including date, notarization details, and land register entry information

3. Property Description: Detailed description of the entire property subject to the original lien, including land register details (Grundbuch information)

4. Release Description: Precise description of the portion of the property/collateral being released from the lien

5. Remaining Security: Confirmation of the continuing validity of the lien over the non-released portion

6. Execution Requirements: Statement regarding notarization requirement and execution formalities under German law

Optional Sections

1. Consideration Statement: Include when the release is given in exchange for payment or other consideration

2. Representations: Include when the lienholder needs to make specific representations about their authority or the status of the lien

3. Conditions Precedent: Include when the release is subject to specific conditions that must be met before it becomes effective

4. Tax Declarations: Include when required for German tax purposes, particularly for real estate transactions

Suggested Schedules

1. Property Plan: Survey or plot plan showing the portion of property being released (for real property liens)

2. Original Lien Document: Copy of the original lien documentation and land register extract (Grundbuchauszug)

3. Release Plan: For partial releases of multiple items of collateral, a detailed list or schedule of the specific items being released

4. Authorization Documents: Any power of attorney or corporate authorization documents required to execute the release

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Banking & Financial Services

Real Estate

Construction & Development

Commercial Property

Industrial Manufacturing

Infrastructure

Agriculture & Farming

Retail & Commercial

Energy & Utilities

Relevant Teams

Legal

Real Estate

Finance

Credit Risk

Collateral Management

Corporate Trust

Transaction Management

Loan Administration

Property Management

Banking Operations

Relevant Roles

Legal Counsel

Real Estate Manager

Property Development Manager

Finance Director

Credit Risk Manager

Collateral Manager

Corporate Trustee

Security Trustee

Transaction Manager

Loan Administrator

Real Estate Attorney

Banking Relationship Manager

Property Portfolio Manager

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Partial Release And Waiver Of Lien

A German law document that partially releases a lien right while maintaining the remainder, requiring formal execution and often notarization under German law.

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Authors

Alex Denne

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