A contract stipulation that permits the seller of an asset to at least partially retrieve asset ownership. For example, the seller of a block of shares could arrange to buy back some shares if he/she wants, or the seller of real estate could gain some of the income generated by the property. The recapture agreement is usually valid only within a specific time period.

Use recapture in a sentence

The Hawks would recapture the lead in the third, but would lose it in the fourth and go down three games to 2.

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The recapture clause in the agreement existed likely due to the sentimental attachment as the man had built the asset with his bare hands.

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When a tax payer purchases a home in which they have taken deductions for depreciation, they must recapture that amount as income and pay ordinary taxes.

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