Contract Requiring Seller to Obtain Release of Mortgage

What is the Contract Requiring Seller to Obtain Release of Mortgage

The Contract Requiring Seller to Obtain Release of Mortgage is an agreement between the sellers and purchasers. In which it states that the sellers own the property which is mentioned and they have sold it to the purchaser in exchange for a sum which is mentioned. Based on that the purchaser then mortgages the purchase money.

It is stated as per the Contract Requiring Seller to Obtain Release of Mortgage where the property is party to the lien of two mortgages which are recorded and the sellers will release and discharge the premises from the lien which are there in the mortgages.

Based on that, the sellers need to get a release of the premises within the stipulated time period which has been agreed upon. This is from the lien of the mortgages which have been made. When the seller is unable to procure as well as file the instruments which are with regards the discharge and release of the property from the lien of the mortgages, then based on the purchaser it can be cancelled or it can be discharged by the purchaser as well as it can be made null and void.

When this happens, then the purchaser will not only get the purchase price returned to him but also the mortgage and the purchaser can reconvey the premises to the sellers.

In situations where the seller fails to discharge or cancel the mortgage as well as he or she does not deliver the purchase money to the purchaser, the purchaser can hold the property and the mortgage.

(No Ratings Yet)

Sample Template Preview

Contract requiring seller to obtain release of mortgage on property.

Agreement, made _________[date] between _________ and _________, spouse, of _________, sellers and _________ of _________, purchaser,
Recitals:
Sellers are the owners of property in _________, described as follows: _________, which they have this day sold and conveyed to purchaser for the agreed consideration of $_____ upon which purchaser is to make a purchase money mortgage of $_____.
The property seems to be subject to the lien of two certain mortgages made by _________, of record in the _________ County Clerk’s office.
Sellers as a part of the consideration of the conveyance agree to procure a release and discharge of the premises from the lien of those mortgages.
Therefore:
Sellers agree to procure a release of the premises, this day conveyed by sellers to purchaser, from the lien of those mortgages made by _________, within a reasonable time. In the event that sellers shall fail to procure and file instruments releasing and discharging the property above described from the lien of those mortgages, within one year from this date, then the mortgage above described for $_____ made by purchaser to sellers, shall, at the election of purchaser, be and become null and void, and shall be canceled and discharged by purchaser. Purchaser shall in that case be entitled to a return of the purchase price paid over and above the mortgage and purchaser shall reconvey the premises unto sellers. In the event that sellers shall fail to cancel and discharge the mortgage and to deliver the purchase moneys so paid to purchaser, then purchaser may be entitled to hold the real property, and the mortgage for $_____ given by purchaser to sellers for a part of the purchase price shall be null and void.
Sellers may have until one year from this date to procure the release and discharge above provided for.