due-on-sale clause

Definition of "due-on-sale clause"
  1. A clause in a mortgage permitting the lender to require full payment immediately when the property securing the loan is sold
How to use "due-on-sale clause" in a sentence
  1. The due-on-sale clause was triggered when John sold his house.
  2. Avoiding the activation of the due-on-sale clause needs careful planning.
  3. The due-on-sale clause ensures the lender can recover their money when the property changes hands.

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