What is true about a partial release clause in a blanket mortgage?

A partial release clause in a blanket mortgage is indeed significant because it permits the release of one specific property from the collateral securing the loan without requiring all properties to be sold together. This is particularly useful in various real estate financing scenarios where a developer or investor may wish to sell individual lots or properties that were included under a single blanket mortgage.

For example, if a developer owns multiple lots under one mortgage and sells one lot, the partial release clause allows them to release that sold lot from the mortgage obligation. This enables the buyer of the sold lot to have clear title and ownership, making the transaction smoother and more attractive to potential buyers. Meanwhile, the remaining properties still stay bound by the mortgage, allowing the borrower to pay down their debt gradually without having to sell all their holdings at once.

The other options do not accurately describe the nature of a partial release clause, as it specifically addresses the flexibility of releasing individual properties, rather than limiting refinancing options, forcing a sale of all properties, or being irrelevant in transactions.