defeasance clause

Definition

Provision included in a mortgage agreement that permits the designated buyer to received the title (deed) to the property after the debt obligations associated with the property have been fulfilled. The buyer has no right to the title until all principal and interest payments have been made.

Use defeasance clause in a sentence

You may want to make sure that there is a defeasance clause if you think that will make things more profitable for you.

​ Was this Helpful? YES  NO 8 people found this helpful.

The defeasance clause was a nice provision that was included in the mortgage agreement and I was very happy to know it existed.

​ Was this Helpful? YES  NO 11 people found this helpful.

Most every loan will be set with a defeasance clause in it, Harry; you have no right to any ownership paperwork until the debt is paid off!

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
defeasance defeasance process