What are the different types of alienation in real estate?

The most straightforward type of alienation is the sale of a property. This is when the ownership of a property is transferred from one person to another in exchange for a specified amount of money. It’s the most common form of alienation in real estate and involves a clear-cut transaction where the seller hands over the title to the buyer.

When does an alienation clause go into effect?

It goes into effect regardless of whether the transfer is voluntary or not. This clause is standard in most mortgage agreements today. Typically, when a mortgaged property transfers ownership, an alienation clause requires the previous owner to repay the loan’s remaining balance right away.

Is an alienation clause enforceable nationwide?

The Garn-St. Germain Act of 1982 overrides state law to make this clause enforceable nationwide, with a few exceptions. An alienation clause is different from an acceleration clause in that the latter typically has to do with non-payment and foreclosure instead of a sale or transfer. An alienation clause is common in most mortgage contracts.