A defeasance clause in real estate is a provision in loan agreements that defines how a borrower can satisfy the lender's requirements in order to release their lien on the property. This clause can ...

Defeasance is now a common feature of real estate finance, allowing a borrower to effectively prepay a loan that is not by its terms prepayable. A defeasance is a substitution of a loan's real estate ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Doretha Clemons, Ph.D., MBA, PMP, has been a corporate IT executive and professor for 34 ...

Every borrower looking to refinance an existing commercial real estate loan or sell a property encumbered by one needs to consider how to release its existing financing. Commercial loan documents ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Defeasance provisions, which allow sponsors to swap out a loan with Treasuries that replicate the cash flows of the loan, have again become a popular option for CMBS borrowers looking to lock in rates ...

With the defeasance sector heating back up, as more borrowers look to replace their CMBS loans with U.S. Treasuries to lock in low interest rates, Wells Fargo set an eyebrow-raising record last year.

Simply sign up to the Property sector myFT Digest -- delivered directly to your inbox. US commercial property owners are turning to an un­usual tactic to unlock the benefits of low interest rates: ...

In their Transactional Real Estate column, Peter E. Fisch and Mitchell L. Berg discuss a common feature of real estate finance—defeasance—which allows a borrower to effectively prepay a loan that is ...