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- fine print
Definition of Due-on-sale Clause
- A mortgage condition or clause that states the loan must be paid in full when the property is sold. Commonly used in reverse mortgage lending.
Related Terms and Acronyms
- Conditional Sale (C/S) — Acronym,
- An agreement between the buyer and seller in where certain conditions must be met before the property sale can be finalized.
- Closing Date (cloda) — Bank,
- The date a buyer takes possession of a property title.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Reverse Mortgage — Bank, Important,
- A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.