A provision in a mortgage enabling the lender to demand full repayment if the borrower sells the mortgaged property.

Another term for this clause is an Acceleration Clause.

An Acceleration Clause usually comes about as the result of a breach of the contract.

The Due On Sale Clause is rarely exercised by a lender.

Some transactions, such as a Contract for Deed, may be grounds for the lender to call the note due.

The due on sale clause has its own set of restrictions. Make sure you are familiar with any loan you sign.

 

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