Escrow & Title
What is a 'release clause' in a Pennsylvania blanket mortgage and why is it important in land development?
AA provision releasing the borrower from personal liability upon the property's sale
BA provision allowing portions of a property to be released from a blanket mortgage lien upon partial payment, enabling individual lots to be conveyed with clear title✓ Correct
CA clause releasing the lender from its lending commitment if market conditions change
DA provision in a title insurance policy releasing the insurer from claims after a specified period
Explanation
A blanket mortgage covers multiple parcels (common in land development). The release clause specifies a payment amount that releases each lot from the lien as it is sold, allowing the developer to convey lots to buyers with clear title.
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