Release Clause

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January 1, 1 7 min read Definitions

Release Clause Mortgage Real Estate Development Subdivision Partial Release Property Sale Loan Retirement

A Release Clause in a mortgage is a provision that allows the borrower to pay off a portion of the mortgage debt, thereby freeing a corresponding portion of the property from the mortgage lien. This is especially useful for subdivided properties or developments where individual parcels are intended to be sold separately.