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.
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