Due on sale clause
Definition
A provision of a loan contract that stipulates that if the property is sold the loan balance must be repaid. This bars the seller from transferring responsibility for an existing loan to the buyer when the interest rate on the old loan is below the current market. A mortgage containing a due-on-sale clause is not an assumable mortgage.
Related Terms Other terms related to 'Due on sale clause' starting with the letter 'D' Default, Dual apper, Dual index mortgage, Documentation requirements, Demand clause Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 