release clause

Release clause

A mortgage provision that releases a pledged asset after a certain portion of the total payments has been made.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Release Clause

In some mortgages, a clause allowing part of the property that has been pledged to have its lien removed once the borrower has made a defined number of payments on the mortgage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

release clause

A mortgage clause that allows a partial release of some of the collateral when the borrower pays off a portion of the loan. Typically found in subdivision development mortgages, because the development lender must release its lien in order for the purchaser-homeowner to secure his or her own first mortgage financing.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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