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Complete glossary lessonNational exam concept

Alienation clause

An alienation clause, often called a due-on-sale clause, allows a lender to require repayment of the outstanding loan when the borrower transfers the secured property without the lender's permitted assumption or consent.

Official area

Financing

Knowledge cluster

Mortgage documents and clauses

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Alienation clause mean in real estate?

An alienation clause, often called a due-on-sale clause, allows a lender to require repayment of the outstanding loan when the borrower transfers the secured property without the lender's permitted assumption or consent.

How is Alienation clause different from the closest exam answer?

Alienation concerns transfer. Acceleration is the broader remedy declaring the balance due after a defined default.

What is the Georgia-specific rule?

The clause appears in financing documents used with Georgia security deeds. It limits an owner's ability to transfer the property subject to the existing loan without lender consequences.

Worked exam example

Scenario

A borrower deeds the home to a buyer who plans to keep making the old payments, but the lender invokes the due-on-sale provision.

Decision rule

Alienation concerns transfer. Acceleration is the broader remedy declaring the balance due after a defined default.

What is the most common exam trap?

Trap correction

The clause does not prohibit every sale. It gives the lender the stated right regarding the loan balance.

Memory cue: The clause does not prohibit every sale.

Original exam check

Apply the definition

Which statement correctly explains Alienation clause?

Mastery tracker

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Recommended next complete lesson

Continue with Financing complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.

Alienation clause quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Alienation clause?

An alienation clause, often called a due-on-sale clause, allows a lender to require repayment of the outstanding loan when the borrower transfers the secured property without the lender's permitted assumption or consent.

What is Alienation clause commonly confused with?

Alienation concerns transfer. Acceleration is the broader remedy declaring the balance due after a defined default.

How does Georgia treat Alienation clause?

The clause appears in financing documents used with Georgia security deeds. It limits an owner's ability to transfer the property subject to the existing loan without lender consequences.