CandleFocus Glossary Editor
A deed of release is a legal document that releases the parties of a previous contract from any obligations that they had to each other. This document can be used in a variety of situations, ranging from mortgage loan agreements to severance packages. The deed of release is most commonly created when a loan is paid off by the borrower and the lender holds the title to the property until the mortgage’s terms have been satisfied.
When the all the payments have been made, the deed of release is used to release the contract between the parties and to transfer the title to the lender. This document is typically held by the lender, who will then use it to prove that their rights to the property have been satisfied and that the loan has been paid off. The deed of release should include details about the parties involved, such as the names of the lender and borrower, the exact property in question, the date of the release, and detailed description of the payments that have been made.
Deeds of release are also used to settle contractual disputes between employers and employees. They are commonly used in severance packages when an employee is leaving a job, or when an employer or employee needs to void a contract. For example, a deed of release might be used to terminate an employment agreement if both parties have agreed to part ways in good terms. This document can be used to waive any mutual obligations that the parties have to each other, including vacation pay and other benefits that the employee might be entitled to.
Furthermore, deed of release forms are also commonly used in cases where one party has guaranteed a loan for another. This allows for the guarantor to be released of any personal obligations that they had towards the lender. The deed of release should specify all the details of the underlying loan, such as the amount that was borrowed, the term of the loan and any other relevant information.
In summary, a deed of release is a legal tool that can be used to freely and voluntarily settle obligations between two parties. This document is typically used with mortgage loans, in employee severance packages, and in cases of guaranteeing a loan. A deed of release can help to protect the rights of both parties and ensures that all obligations are settled before the contract ends.
When the all the payments have been made, the deed of release is used to release the contract between the parties and to transfer the title to the lender. This document is typically held by the lender, who will then use it to prove that their rights to the property have been satisfied and that the loan has been paid off. The deed of release should include details about the parties involved, such as the names of the lender and borrower, the exact property in question, the date of the release, and detailed description of the payments that have been made.
Deeds of release are also used to settle contractual disputes between employers and employees. They are commonly used in severance packages when an employee is leaving a job, or when an employer or employee needs to void a contract. For example, a deed of release might be used to terminate an employment agreement if both parties have agreed to part ways in good terms. This document can be used to waive any mutual obligations that the parties have to each other, including vacation pay and other benefits that the employee might be entitled to.
Furthermore, deed of release forms are also commonly used in cases where one party has guaranteed a loan for another. This allows for the guarantor to be released of any personal obligations that they had towards the lender. The deed of release should specify all the details of the underlying loan, such as the amount that was borrowed, the term of the loan and any other relevant information.
In summary, a deed of release is a legal tool that can be used to freely and voluntarily settle obligations between two parties. This document is typically used with mortgage loans, in employee severance packages, and in cases of guaranteeing a loan. A deed of release can help to protect the rights of both parties and ensures that all obligations are settled before the contract ends.