Defeasance

/dɪˈfiːzəns/ noun

Definition

In law, the act of making something void or of no effect, especially through a conditional agreement or document that cancels a prior obligation.

Etymology

From Old French defesance (undoing), from defaire (to undo), combining de- and faire (to do/make). This medieval legal term entered English through Norman law and remains in property law.

Kelly Says

Mortgage documents secretly contain 'defeasance clauses' that let a lender sell off your debt to another company—you think you're paying your original bank, but they've legally made that debt void and transferred it without telling you. It's why you can receive a new payment bill out of nowhere.

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