Non-assumption Clause

Definition

• A provision or condition of a loan agreement that prohibits the borrower from transferring the mortgage to another borrower without permission from the lender.

Synonyms
fine print, assumption provision, unassumable

Related Terms and Acronyms

• Alienation Clause — Definition,
  • A requirement that the borrower pay the mortgage in full upon transfer of the property.
• Assumability — Definition,
  • The ability of a mortgage to be taken over from the original borrower by a new borrower.
• Assumable Mortgage — Definition, Very Important,
  • A mortgage that can be taken over or "assumed" by the buyer when a home is sold.