Definition: In the introductory mortgage context, a defeasance clause provides that the mortgage security ends when the borrower fully performs the secured obligation.
Example
The debt is paid and required performance is complete, so the mortgage lien is discharged.
Keep the distinction clear
Florida borrowers do not first become owners at payoff. Commercial collateral-substitution defeasance is a different use of the term.
Related terms
Satisfaction of Mortgage · Mortgage · Lien
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: Florida Statutes 701.04: mortgage satisfaction
Pronunciation (US): dih-FEE-zuhns KLAWZ (capitals show stress)
Pronunciation reference: Merriam-Webster
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