PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
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.
Financing
Mortgage documents and clauses
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Alienation clause mean?
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 do you separate the nearest exam answer?
Alienation concerns transfer. Acceleration is the broader remedy declaring the balance due after a defined default.
What changes or stays the same in Georgia?
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.
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.
The clause does not prohibit every sale. It gives the lender the stated right regarding the loan balance.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A homeowner deeds the house to a buyer who agrees to keep paying the owner's existing loan, without asking the lender. No payment has been missed. The lender learns of the transfer and demands payment in full. Which clause is the lender relying on?
- A
Acceleration clause for payment default
- B
Subordination clause
- C
Alienation clause
- D
Escalation clause
An alienation, or due-on-sale, clause is triggered when the borrower transfers the property without the lender's consent or a permitted assumption. No payment was missed, so a default-based acceleration is not the trigger here. The clause does not forbid the sale; it gives the lender the right to call the loan.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Financing complete lesson
https://www.passgeorgiarealestate.com/study-guide/financing/mortgage-clauses
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Current Georgia security-deed, cancellation, lien, and power-of-sale authority through the state-authorized code portal.
https://www.lexisnexis.com/hottopics/gacode/Default.asp