George owns an acre of land and severs,or divides,it into building lots.Before George can build on the lots he requires money to finance the construction costs,so he goes to his bank and gets first mortgage financing in the amount of $1.5 million and the bank registers the mortgage on all the building lots.If George finishes construction on one building lot,sells it,and pays down the bank's mortgage,the bank will give George

Question

Quizplus · Accepted Answer

Since the bank registered the mortgage on all of the building lots, it is likely that the bank will only release the mortgage for the specific lot that George has paid down, which would result in a partial discharge of the mortgage. This would allow George to continue to use the remaining lots as collateral for future financing if necessary. A complete discharge or assignment of the mortgage would require all lots to be paid off and would remove the bank's security. A partial assignment of the mortgage would only transfer a portion of the bank's interest to another party. A reconveyance of legal title means that the property would be transferred back to George without any mortgages or liens, which is not likely in this scenario.

George Owns an Acre of Land and Severs,or Divides,it into Building