Release Price Schedule

A release price schedule is an explicit table or formula included in loan documents that specifies the payment amount required to release individual assets or units from the loan’s collateral package. It typically ties release prices to outstanding principal, prepayment premiums, adjustments for assumed carve-outs, and sometimes income or value-based multipliers. The schedule gives borrowers and purchasers certainty about the financial steps needed to obtain a lien release and prevents ad hoc disputes over how partial payoffs change the lender’s exposure.

When negotiating a sale of a single asset inside a portfolio mortgage, parties refer to the release price schedule to calculate the cashier’s check due at closing or the amount to be delivered to escrow. Lenders apply the schedule to produce a payoff statement and to document the deed of release. Borrowers should confirm whether the schedule allows downward adjustments for observed value changes or requires additional cure amounts such as reimbursement for unpaid reserves, taxes, or environmental remediation before the release will be recorded.

A clear release price schedule is important because it standardizes partial release economics and eliminates ambiguity during asset sales or refinances, reducing closing friction and title risk. For lenders, it protects loan economics by ensuring compensation for lost collateral and associated risk. For borrowers and buyers, it provides upfront transparency on costs and helps underwrite the transaction. Ambiguous or absent release pricing can delay deals, invite litigation, or produce unexpected funding shortfalls at closing.