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December 07, 2018
Alienation Clause
Word of the day
Alienation Clause
A provision sometimes found in a promissory note or mortgage that provides that the balance of the secured debt becomes immediately due and payable at the option of the mortgagee upon the alienation of the property by the mortgagor. Alienation is usually broadly defined to include any transfer of ownership, title, or an interest or estate in real property, including a sale by way of a contract for deed. Also called a due-on-sale clause.
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John Reilly
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