What is an alienation clause in real estate?

An alienation clause is common in most mortgage contracts. But what is alienation in real estate? This is a provision that requires a home seller to repay their mortgage balance at the time of sale. Here’s what that means for the current homeowner and, sometimes, for the homebuyer as well.

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.

What are alienation clauses & acceleration clauses?

In short, alienation clauses and acceleration clauses are standard provisions in nearly every mortgage contract. These clauses are meant to protect lenders, so it’s important for home buyers to understand these provisions before signing a mortgage contract. We’re here to help you every step of the way.