What term describes a clause that allows a lender to demand full payment upon the sale of a property?

The term that describes a clause allowing a lender to demand full payment upon the sale of a property is "due-on-sale." This clause, also known as a "due-on-sale" clause, enables the lender to call the entire loan balance when the property is sold or transferred to another party. This is important for lenders as it protects their interests by ensuring they can collect the full amount owed if the property changes hands, especially if the loan has favorable terms that could lead to a loss in value for the lender if it were to remain with a new owner.

The due-on-sale clause is particularly relevant in real estate transactions as it can impact the buyer's ability to assume an existing mortgage under its original terms. If a property is sold, and there is a due-on-sale clause in the mortgage, the lender has the right to require that the entire mortgage be paid off at closing, which can affect the financing options available to the buyer.

In contrast, the other terms do not apply in this context. A default clause generally pertains to circumstances under which the borrower has failed to meet the mortgage obligations. Alienation, while relevant to the transfer of property, refers more broadly to the act of transferring property rights rather than the lender's specific rights regarding loan