Specimen Partial-Release Language

Either the Deed of Trust of record or the underlying loan documents may already contain provisions similar to the following, providing for partial release from the lien of the Deed of Trust of individual lots or units upon contract and sale to a third party.

If not already contained in those documents, and excerpted pages containing similar provisions are not available as a DRE filing requirement, language similar to the following may be provided in a letter addressed to the AzDRE and signed by the lender, describing the property and the Deed of Trust in question:

 

"Lender will release from the operation of the Deed of Trust any part or parts of the Property given to secure payment of the Indebtedness. Trustee shall execute and deliver to Lender a written partial release upon receiving a written request from Lender. The written request shall include a description of the Property to be released and a declaration that Lender is the owner and holder of the debt mentioned in the Deed of Trust. The partial release executed by the Trustee shall identify the Deed of Trust and describe the Property to be released. A partial release executed and delivered by the Trustee under the authority of this provision shall not affect or impair the security remaining under the Deed of Trust. 

Lender will provide partial releases of the lien of the Deed of Trust upon the following conditions:

$00,000 per lot/unit release; note to be paid in full with release of the ___[th] lot/unit."