Report post

What is an alienation clause in a mortgage?

Most lenders include an alienation clause (also called the “due-on-sale clause”) in their mortgage contracts to protect their interests in case you hand off the title of your home to someone else. Here are the main points you should know about the alienation clause, including what it is, how it works, when it applies and when it doesn’t.

Can a mortgage be transferred without an alienation clause?

While the alienation clause is designed to protect the lender by ensuring the mortgage is paid off before a property is transferred, there are exceptions where the clause may not be enforced, or certain transfers are permitted without triggering the clause.

What is alienation in real estate?

In real estate, alienation is the voluntary legal action taken by a property owner to transfer or dispose of their property. It encompasses a property’s right to be sold or given to someone else. Nearly all mortgages today include an alienation clause, which prevents the borrower from transferring the loan with the sale of the home.

The World's Leading Crypto Trading Platform

Get my welcome gifts