Due-on-sale clause

{
  "id": "MLC-T-LAW-001775",
  "term": "Due-on-sale clause",
  "field": "Law",
  "definition": "A provision in a mortgage or deed of trust that allows the lender to demand immediate repayment of the entire loan balance if the borrower sells or transfers the property without the lender's prior written consent. This clause prevents the assumption of a mortgage by a new buyer at the original interest rate. It is designed to protect the lender's interest rate yield.",
  "url": "https://mlchart.com/terminology/law/due-on-sale-clause/"
}