Definition
A mortgage provision allowing the lender to demand full repayment if the property is sold or transferred.
Example
Transferring title into an LLC can technically trigger a due-on-sale clause, though lenders rarely enforce it.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Due-on-Sale Clause mean in real estate?
A mortgage provision allowing the lender to demand full repayment if the property is sold or transferred.
How is Due-on-Sale Clause used in practice?
Transferring title into an LLC can technically trigger a due-on-sale clause, though lenders rarely enforce it.
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.