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Glite Dictionary
💸 Paying off debt 📄 Contract becomes void
defeasance

defeasance

1 9.9
A clause that makes a contract or property document void if a certain condition happens
  • noun
  • /dɪˈfiːzəns/
  • Specialized
: cláusula de defeasancia
  • In real estate, a defeasance provision can make a mortgage loan ineffective under certain conditions.

Examples

  • I am going to explain to you why you need to think about running the other way if your commercial mortgage loan contains a DEFEASANCE provision.

    Blog text (7)

  • Meanwhile, the state has told the BCWA that it is preparing amendments to the legislation for "defeasance" (make null and void) the allocation of the $6.9 million from its original intent.

    Blog text (10)

  • The defeasance clause in the contract means it will become void if the terms are not met.

  • When the specified condition occurs, the defeasance will render the agreement null and void.

Antonyms

validity
  • Formal
18 4.9

Legal force that makes a document or agreement binding

Surface Forms

defeasance singular
defeasances plural

Morphology

defeasance = defease (transparent) = defease + ance

Formed by adding the noun-forming suffix '-ance' to the verb 'defease'; the noun denotes the result or condition of defeasing.

Etymology

Defeasance comes from the parts de- and feasance, with feasance from Latin facere meaning 'to make' and de- meaning 'remove'. So a defeasance clause is a rule that 'undoes' or cancels a contract or deed when a certain condition is met.