In a blanket mortgage, which special clause would you most likely find?

Study for the Arizona Real Estate Exam. Boost your knowledge with flashcards and multiple choice questions with explanations. Be exam-ready with our comprehensive review!

In a blanket mortgage, a release clause is commonly included to provide flexibility for the borrower. This clause allows for the gradual release of individual properties from the mortgage as they are sold or refinanced. Essentially, a blanket mortgage covers multiple properties or parcels of land under a single loan, and when one of these properties is sold, the release clause enables the borrower to free that specific property from the mortgage burden.

This feature is particularly useful for developers or investors who may plan to sell properties one by one while retaining the overall financing terms. The release clause ensures that even after selling certain properties, the remaining properties can stay under the blanket mortgage, which can be beneficial in managing cash flow and real estate investments more efficiently. Other clauses like an acceleration clause or an alienation clause may have their own applications in different mortgage contexts, but the release clause stands out as a critical component specific to blanket mortgages.

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