Acquittance
Acquittance is a document or simple receipt that states that a person has made full payment of an obligation and therefore releases the lender’s security interest.
In website deals, this document is usually not necessary. The financial records showing payments can be used as proof of payment and the buyer gives immediate notice to the escrow company to release collateral such as a domain name.
In real estate deals, when a borrower completes the last payment on a mortgage, the lender issues a Satisfaction of Mortgage document. This states that the debt has been fully repaid.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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