HomeTermsCompareFinance Due on Sale ClauseThe definition for Due on Sale Clause:A clause in a mortgage loan which gives the lender the right to demand payment in full when the property changes ownership. Not applicable to FHA or VA loans. Similar MatchesAcceleration ClauseAcceleration ClauseClause used in an installment note and mortgage (or deed of trust), which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender's consent, destruction of the property, or other event which endangers the security of the loan. Cancellation ClauseCancellation ClauseA clause in a lease or other contract, setting forth the conditions under which each party may cancel or terminate the agreement. The conditions may be as simple as giving notice or complex and require payment by the party desiring to cancel. Escalation ClauseEscalation ClauseA clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as (1) Fixed increase - A clause which calls for a definite, periodic rental increase. (2) Cost of living - A clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes. (3) Direct expense - The rent is adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases. increased maintenance costs, etc. Further SuggestionsNo Bonus Clause"Subject To" Clause S Safety Clause Click to compare definitions of Due on Sale Clause Click to view definitions beginning du |