What is an example of an alienation clause?

For example, your lender provides you a loan in exchange for the title, which the lender then uses as collateral while you repay the loan. Similarly, your lender uses the alienation clause to ensure they make back the money you borrowed even when you sell or transfer ownership of your home.

What is an alienation clause in a real estate agreement?

In real estate agreements, alienation clauses can restrict property ownership transfer. The alienation clause may specify certain conditions that must be met before the property can be sold, such as obtaining the consent of certain parties.

What is a mortgage alienation clause?

The clause provides assurances to the lender that the debt will be fully repaid in the event of a real estate sale or if the property is transferred to another party. The alienation clause essentially releases the borrower from their obligations to the lender since the proceeds from the home sale will pay off the mortgage balance.