What type of mortgage usually covers more than one parcel of land allowing for individual releases from liability?

A blanket mortgage is specifically designed to cover multiple parcels of land or properties under a single mortgage agreement. This type of mortgage is particularly useful for developers or investors who own several lots or properties and want to secure financing that encompasses all those parcels.

One of the key features of a blanket mortgage is the ability to release individual parcels from the mortgage obligation. This means that if one parcel is sold, that specific property can be released from the mortgage lien, allowing the owner to sell it without paying off the entire loan. This flexibility is advantageous in real estate transactions, where properties may be developed or sold at different times.

In contrast, other types of mortgages, such as conventional or subordinate mortgages, typically cover only a single parcel of property and do not offer this individual release feature. Encumbered mortgages are not a recognized category in this context and do not pertain to the concept of covering multiple parcels. Hence, the blanket mortgage is the clear choice in terms of both coverage and the ability to release specific properties from the mortgage.