(A) In a Chapter 7 bankruptcy, when a debtor pays a creditor on a debt to redeem property, e.g. a motor vehicle. (B) Foreclosure: when the defaulting party pays an amount to satisfy a lender and redeems the property out of a foreclosure action. (C) contracts. The act of taking back by the seller from the buyer a thing which had been sold subject to the right of repurchase. 2. The right of redemption then is an agreement by which the seller reserves to himself the power of taking back the thing sold by returning the price paid for it. As to the fund out of which a mortgaged estate is to be redeemed, see Payment. Vide Equity of redemption.
Law Dictionary – Alternative Legal Definition
A repurchase; a buying back. The act of a vendor of property in buying it back again from the purchaser at the same or an enhanced price. The right of redemption is an agreement or paction, by which the vendor reserves to him self the power of taking back the thing sold by returning the price paid for it. Civil Code La art 2567. The process of annulling and revoking a conditional sale of property, by performance of the conditions on which it was stipulated to be revocable. The process of cancelling and annulling a defeasible title to land., such as is created by a mortgage or a tax sale, by paying the debt or fulfilling the other conditions. The liberation of a chattel from pledge or pawn, by paying the debt for which it stood as security. Repurchase of notes, bills, or other evidences of debt (particularly bank notes and paper money,) by paying their value in coin to their holders. Redemption, equity of. See Equity or Redemption. Redemption of land tax. In English law. The payment by the landowner of such a lump sum as shall exempt his land from the land tax. Mozley & Whitley. Voluntary redemption, in Scotch law, is when a mortgagee receives the sum due into his own hands, and discharges the mortgage, without any consignation.