Escrow & Title
In South Carolina, what is a 'release clause' in a mortgage?
AA clause allowing the borrower to walk away from the property without repaying the loan
BA clause allowing specific parcels to be released from a blanket mortgage upon payment of a specified amount✓ Correct
CA clause releasing the lender from liability for appraisal errors
DA clause allowing early payoff without penalty
Explanation
A release clause in a blanket mortgage allows individual parcels to be released from the lien when the developer pays a specified amount to the lender. This lets the developer sell individual lots or units free and clear as the project is built out.
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