Release of Real Property Clause Samples
The Release of Real Property clause serves to formally remove certain real estate from the obligations or restrictions imposed by an agreement, such as a mortgage or security instrument. In practice, this clause typically specifies the conditions under which a property, or a portion of it, can be released—such as upon repayment of a specified amount of debt or fulfillment of other contractual requirements. Its core function is to provide a clear mechanism for freeing property from encumbrances, thereby allowing the owner to sell, refinance, or otherwise deal with the property without the constraints of the original agreement.
Release of Real Property. The Borrower shall have the right, at any time and from time to time, to a release of any portion of the Project Premises from the Subordinate Mortgage, but only as follows:
(1) Project Premises not containing any permanent structure necessary for the total operating unity and efficiency of the Project may be released for the purpose of selling the same to a third person or to facilitate the construction or financing of additions to the Project or additional structures not related to the Project on such portion of the Project Premises, but only upon receipt by the Trustee of the following:
(a) Certificate of a Borrower Representative setting forth in substance as follows:
(i) The address and legal description of the portion of the Project to be released;
(ii) The number of square feet of the property to be released,
(iii) A certification that (a) the portion of the Project to be released is not needed for the operation of the Project and is not necessary for the total operating unity and efficiency of the Project, and the release will not cause a reduction in the net revenues of the Project; (b) the release will not impair the structural integrity of the Project or the usefulness of the Project; and (c) the release will not inhibit adequate means of ingress to or egress from the Project;
(iv) No Default exists under this Loan Agreement, and
(v) All conditions precedent herein provided for relating to such release have been complied with;
(b) An ALTA survey prepared by a registered land surveyor describing and showing the Project Premises, after giving effect to such release; and
(c) An opinion of counsel stating that the certificates, opinions and other instruments which have been or are therewith delivered to and deposited with the Trustee conform to the requirements of this Loan Agreement and that, upon the basis of such application, the property may be released from the lien of the Subordinate Mortgage, and that all conditions precedent herein provided for relating to such release have been complied with.
(d) If the Senior Notes are outstanding, evidence that the Initial Funding Lender or Freddie Mac, as applicable, has consented in writing to the release of such real property and evidence of such written approvals provided to the Trustee.
(2) The Borrower may at any time or times grant easements, licenses, rights of way and other rights or privileges in the nature of easements with respect to the Project Premises, free from the lien of the Subordinate ...
Release of Real Property. Bank shall release from its Mortgage any Real Property upon Borrowers' sale or refinancing thereof, provided that: (i) no Event of Default exists hereunder; (ii) upon such release the Collateral Amount for Real Property remaining in the Collateral Pool will be not less than the Maximum Amount then in effect, and (iii) Borrowers shall apply contemporaneously with such release, reduce the Maximum Amount in accordance with Section 4.5 hereof in an amount equal to the net proceeds of such sale or refinancing, or such lesser amount as Bank shall approve in writing.
Release of Real Property. Agent may release the mortgage or deed of trust covering any Real Property which is Collateral upon request by the Revolving Loan Borrower if the following conditions are satisfied: (a) no Event of Default has occurred and is continuing or will exist after giving effect to any release, (b) after giving effect to such release the aggregate outstanding principal amount of the Revolving Loans, Revolving Swing Line Loans and LC Obligations will not exceed the Maximum Revolving Loan Amount (provided, that, for purposes of this determination, the Borrowing Base shall, upon request of Agent or Lender, be updated as of the release date (or as of another recent date required by Agent), and in any event, the Real Property to be released shall not be included in the calculation of the Borrowing Base), and (c) each Loan Party shall execute such documents and satisfy such conditions as are reasonably required by Agent in connection with the release. The Revolving Loan Borrower shall pay all recording costs, filing costs, costs of appraisals or other evaluations, Attorney Costs and other costs incurred by Agent in connection with any release. Agent may, if the foregoing conditions are satisfied, agree to any such release without the consent of any Lender being required. Upon such release, the released Real Property shall be removed from the Borrowing Base.
Release of Real Property. In the event that Tenant shall not elect to purchase the Real Property pursuant to the provisions of Section 16.1 through 16.3 above, Landlord may sell the Real Property to the proposed transferee on the terms and conditions contained in the Transfer Notice. During the period commencing with substantial completion of the Phase II Premises and ending on the third anniversary thereof (the “Ongoing Rights Period”), if such transfer is not consummated, the provisions of Sections 16.1 through 16.3 shall again apply to any proposed sale of the Real Property. After the Ongoing Rights Period, once Landlord has delivered a Transfer Notice, then if Tenant shall not elect to purchase the Real Property pursuant to this Article XVI, then Tenant’s rights under this Article XVI shall terminate. If Tenant exercises its rights hereunder and delivers a notice of acceptance but fails to complete the purchase of the Real Property solely due to Tenant’s default, then Tenant’s rights under this Article XVI shall terminate.