GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Due-on-sale Clause


Synonyms:condition, fine print, payment, transaction
Filed Under: financial-banking, legal-contracts, mortgages
Tags: banking, clause, contract, legal, mortgage
 

Definition of due-on-sale clause

due-on-sale clause
1. A mortgage condition or clause that states the loan must be paid in full when the property is sold. Commonly used in reverse mortgage lending.

Related Terms and Acronyms:

  • closing date (cloda)   The date a buyer takes possession of a property title.
  • conditional sale (C/S)   An agreement between the buyer and seller in where certain conditions must be met before the property sale can be finalized.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • reverse mortgage   A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.

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