Contracts
A 'release clause' in a real estate contract or mortgage allows:
AThe buyer to release the seller from all warranties after closing
BIndividual parcels to be released from a blanket lien as they are sold or paid for✓ Correct
CThe lender to release the borrower from paying property taxes
DThe broker to release the listing without the seller's consent
Explanation
A release clause in a blanket mortgage allows individual parcels to be released from the lien when a specified portion of the debt is paid or when individual lots are sold. This is important for developers who build and sell individual lots or units from a larger development financed by one blanket loan.
Related Illinois Contracts Questions
- In Illinois, the attorney review period in a residential real estate contract typically lasts:
- What is the difference between 'assignment' and 'novation' in an Illinois real estate contract?
- A purchase and sale agreement in Illinois that has an inspection contingency typically allows the buyer to:
- A real estate purchase contract that contains a contingency for the buyer to sell their current home is known as a:
- An option contract in real estate gives the optionee (buyer) the:
- Under Illinois law, which of the following statements about earnest money is correct?
- What is a novation in contract law?
- In an Illinois real estate transaction, what is 'consideration' and why is it required?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →