power of sale
- It is the authority given, usually through a legal document like a will, trust, or mortgage, that allows the property involved to be sold, often under certain conditions such as a mortgage default
- In the mortgage agreement, the bank retained the power of sale in case the borrower defaults on the loan payments.
- The trust document included a power of sale provision to allow the trustee to sell the property if necessary.
- Should the mortgagee fail to meet repayment obligations, the power of sale clause could be enacted to recover the owed sum.