Legal Dictionary of Pakistan

release clause

Real estate. 1. A blanket-mortgage provision that enables the mortgagor to obtain a partial release of a specific parcel of land from the mortgage upon paying more than the pro rata portion of the loan. ( Mortgagees commonly include a clause that disallows a partial release if the mortgagor is in default on any part of the mortgage. 2. A purchase-agreement provision that allows a seller who has accepted an offer containing a contingency to continue to market the property and accept other offers. ( If the seller accepts another buyer's offer, the original buyer typically has a specified time (such as 72 hours) to waive the contingency (such as the sale of the buyer's present house) or to release the seller from the agreement.