Escrow & TitleIntermediateAlaska Exam

In Alaska, a 'release clause' in a blanket mortgage allows a borrower to:

APay off the mortgage early without penalty
BRelease individual parcels from the mortgage lien upon partial paymentCorrect
CRelease a co-borrower from the loan obligation, under standard practice
DTransfer the mortgage to another property

Why Release individual parcels from the mortgage lien upon partial payment Is Correct

Answer B: Release individual parcels from the mortgage lien upon partial payment

A release clause in a blanket mortgage allows the borrower to sell individual parcels and release them from the mortgage lien upon paying a specified amount. This is commonly used by developers who need to sell individual lots while the overall project is still under construction financing.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

People Also Study

Study This Topic

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →