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People also ask
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What is the clause in a contract that gives the lender certain stated rights when there is a transfer of ownership in a property?
The legal clause that gives the lender certain stated rights when there is a transfer of ownership in the property is known as the Due-on-Sale Clause. This fundamental property rights clause is often included in a loan contract, providing legal protection and recourse for the lender.
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What clause in a mortgage addresses the transfer of the property by the borrower?
The due on sale clause (a.k.a “acceleration clause”) is a provision in a mortgage document which gives the lender the right to demand payment of the remaining balance of the loan when the property is sold.
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What clause in a mortgage addresses the transfer of the property by the borrower Quizlet?
Alienation Clause: This is a clause in a promissory note and is also referred to as a "Due on sale Clause". The entire balance of the loan becomes due and payable when the property is transferred. This prevents assumption. Justin defaulted on his home mortgage payments.
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What is the due on sale transfer clause?
A due-on-sale clause is a mortgage contract provision that requires the borrower to repay the lender in full upon the sale or conveyance of a partial or full interest in the property that secures the mortgage.
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What is the defeasance clause in a mortgage?
A defeasance clause is a term within a mortgage contract that states the property's title will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).
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What is the mortgagee clause address?
It's the address the mortgage company uses for insurance purposes. It is not the same as their corporate address. Nor the place where you send your mortgage payments. It's a seperate specific address just for insurance.
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