Underwriting Manual: TX
17.26
Releases
Underwriting Manuals
Standard Exceptions
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Bulletins
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Forms
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State Supplements
View state supplements to the national underwriting manual.
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17.26.1
In General
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| A “release” can be defined as the relinquishment of a right, claim, or privilege. Because it is considered a contract, any release must contain a valuable consideration. |
| Releases do not follow specific forms or wordings. In fact, there exists a wide variance of forms among the states. |
| It should be noted that technically speaking, a “release” is not the equivalent of a “waiver” or a “satisfaction”; although, many times the terms are being used interchangeably. A “satisfaction” indicates fulfillment or complete payment of an obligation; while a “release” just discharges an indebtedness without a “satisfaction” necessarily taking place. “Waiver” is essentially unilateral. It is a legal consequence from some act or conduct or party against whom it operates, and no act of a party in whose favor it is made necessary to complete it. |
17.26.2
Points To Consider When Reviewing Releases
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| · | Is there a specific statutory form that must be used? (Not Required in Texas). |
| · | Is the adequate form being used in order to effectuate the release? |
| · | Is the language being used sufficient for the purposes of the release. |
| · | Is there an adequate consideration given for the release? |
| · | Is the party executing the release empowered or authorized to execute it? |
| · | Does any other party (spouse, partner, tenant, lender, other lot owners, etc.) need to join in the execution of the release? |
| · | Is a condition, exception, or reservation contained in the release? |
| · | Is all the property being released? |
| · | Has the released been properly recorded? |
| · | Has the recording of the lease been authorized by the party executing the release? |