Defeasance Clause.

A defeasance clause is a provision in a mortgage contract that allows the borrower to repay the loan early, without penalty. The clause typically stipulates that the borrower must provide the lender with written notice of their intent to repay the loan, as well as proof that the funds are available to do so. Once the loan is repaid, the property is released from the mortgage contract and the borrower is no longer liable for the loan.

How do you say defeasance clause?

A defeasance clause is a provision in a mortgage that allows the borrower to repay the loan early, without penalty. The clause typically stipulates that the borrower must provide the lender with written notice of their intent to repay the loan, and that the loan must be repaid in full within a certain timeframe. Who does a defeasance clause protect? A defeasance clause protects a borrower from having to pay a penalty if they pay off their mortgage early. The clause states that the borrower will not be responsible for any penalties if they pay off the mortgage within a certain time frame. Is Defease a word? No, "defease" is not a word.

What is a liquidation clause? A liquidation clause is a clause in a mortgage that gives the lender the right to demand that the borrower repay the entire loan balance if the property is sold or transferred. This clause protects the lender's interest in the property and ensures that the loan will be repaid if the borrower decides to sell the property. What is a exculpatory clause in mortgage? A exculpatory clause in mortgage is a clause that releases the mortgagee from liability in the event of a default on the mortgage. This clause is typically included in the mortgage agreement.