Question

Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?

A) The Release Clause
B) The Defeasance Clause
C) The Alienation Clause
D) The Prepayment Penalty Clause

Answer 1

The defeasance clause is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off.

Step-by-step explanation:

The defeasance clause is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off.

The correct answer is Option B) The Defeasance Clause.

A blanket mortgage is a type of mortgage that covers multiple properties or lots. The defeasance clause is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off.

For example, if a property that is part of a blanket mortgage is sold, the defeasance clause would allow the proportionate amount of the mortgage to be paid off, freeing the property from the mortgage claim.