due-on-sale clause
A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage upon sale or transfer of ownership of the property used to secure the mortgage. (See: acceleration clause)
Category: Personal Finance & Retirement
Category: Real Estate & Rental Property → Selling a House

Nolo’s Plain-English Law Dictionary. . 2009.

Look at other dictionaries:

  • Due-on-sale clause — A due on sale clause is a clause in a loan or promissory note that stipulates that the full balance may be called due upon sale or transfer of ownership of the property used to secure the note. The lender has the right, but not the obligation, to …   Wikipedia

  • Due-On-Sale Clause — A provision in a mortgage contract that requires that the mortgage be repaid in full upon a sale or conveyance of interest in the property that secures the mortgage. Mortgages with a due on sale clause are not assumable. A due on sale clause… …   Investment dictionary

  • due-on-sale clause — A provision usually found in a note or mortgage whereby the entire debt becomes immediately due and payable at mortgagee s option upon sale of mortgaged property. Such clauses are generally used to prevent subsequent purchasers from assuming… …   Black's law dictionary

  • due-on-sale clause — A provision usually found in a note or mortgage whereby the entire debt becomes immediately due and payable at mortgagee s option upon sale of mortgaged property. Such clauses are generally used to prevent subsequent purchasers from assuming… …   Black's law dictionary

  • due-on-sale clause — A provision in a mortgage permitting the lender to demand payment in full when the property is sold. American Banker Glossary A mortgage contract clause stipulating that the borrower pay off the full remaining principal on a mortgage if the… …   Financial and business terms

  • due-on-sale provision — USA A provision in a promissory note, loan or mortgage that allows the lender to demand payment of the full balance owed when the borrower sells or transfers real property used as security. This kind of clause is standard in mortgages executed in …   Law dictionary

  • acceleration clause — n: a clause (as in a loan agreement) that accelerates the date of payment in full under specified circumstances (as default by the debtor) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. acceleration clause …   Law dictionary

  • Assumption Clause — A provision in a mortgage contract that allows the seller of a home to pass responsibility to the buyer of the home for the existing mortgage. In other words, the new homeowner assumes the existing mortgage. There are typically many conditions… …   Investment dictionary

  • Contract Clause — United States of America This article is part of the series: United States Constitution Original text of the Constitution Preamble Articles of the Constitution I · …   Wikipedia

  • Exclusion clause — An exclusion clause is a term in a contract that seeks to restrict the rights of the parties to the contract. Exclusion clauses generally fall into one of these categories:Traditionally, the district courts have sought to limit the operation of… …   Wikipedia

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