Escrow & TitleIntermediateAlaska Exam

Under Alaska law, a 'partial release' from a blanket mortgage is triggered when:

AThe borrower refinances the entire loan
BA borrower pays a specified amount to release one parcel from coverage of a blanket mortgageCorrect
CThe lender agrees to lower the interest rate
DThe borrower sells all parcels covered by the mortgage, though specifics can vary by situation

Why A borrower pays a specified amount to release one parcel from coverage of a blanket mortgage Is Correct

Answer B: A borrower pays a specified amount to release one parcel from coverage of a blanket mortgage

A partial release occurs when a portion of the mortgaged property is released from the lien upon payment of a specified sum. This is common in construction and land development loans where the developer needs to sell individual lots and release them from the overall blanket loan.

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

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