Question

A defeasance clause would MOST likely be found in: Select one:

a. A mortgage or trust deed
b. A promissory note
c. A listing contract
d. An offer to purchase

Answer 1

A defeasance clause, which voids a debt document upon repayment, is most likely found in a mortgage or trust deed.

Step-by-step explanation:

A defeasance clause is a provision typically found in a mortgage or trust deed that nullifies the document when the debt is repaid. This clause is essentially a statement that the mortgage or deed of trust becomes void once the borrower has paid back the loan according to the agreed terms. It ensures that the borrower's property title is clear once the loan is fully paid off.

The answer to the question is: a defeasance clause would MOST likely be found in:
a. A mortgage or trust deed