Due-on-sale Clause

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • condition
  • transaction
  • payment
  • fine print

Definition of Due-on-sale Clause

  1. 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.
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