Definition
Failure to meet a legal obligation under a loan or lease, such as missing payments or violating covenants.
Example
The lease defined default to include both nonpayment and unapproved alterations.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Default mean in real estate?
Failure to meet a legal obligation under a loan or lease, such as missing payments or violating covenants.
How is Default used in practice?
The lease defined default to include both nonpayment and unapproved alterations.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.