defeasance

American  

[dih-fee-zuhns] / dɪˈfi zəns /

noun

Law.

1. a rendering null and void.

2. a condition on the performance of which a deed or other instrument is defeated or rendered void.

3. a collateral deed or other writing embodying such a condition.

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defeasance British  

/ dɪˈfiːzəns /

noun

1. the act or process of rendering null and void; annulment

2. 1. a condition, the fulfilment of which renders a deed void

   2. the document containing such a condition

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Other Word Forms

• nondefeasance noun

Etymology

Origin of defeasance

1400–50; late Middle English defesance < Anglo-French defesaunce, Old French defesance, equivalent to desfes- (past participle stem of desfaire to undo; defeat ) + -ance -ance

Example Sentences

The defeasance transaction involves no “uncompensated taking” and doesn’t generate a financial loss for a mortgage lender.

From The Wall Street Journal • Dec. 26, 2025

The defeasance agent’s guarantee to remit the remaining mortgage payments to the mortgage servicer on time and in full substitutes for the home seller’s liability.

From The Wall Street Journal • Dec. 26, 2025

The defeasance manager provides the seller or settlement agent with a fair-market valuation of the remaining payments on a home’s outstanding mortgage, determined using the current market prices of a portfolio of Treasury securities.

From The Wall Street Journal • Dec. 26, 2025

The defeasance account manager collects this market value at settlement, and invests the proceeds in the appropriate U.S.

From The Wall Street Journal • Dec. 26, 2025

The notary raised his eyes to the ceiling, and said in a tone of great pity,— "At least, let me make him give you a deed of defeasance."

From The Clique of Gold by Gaboriau, Émile