Finance
Due-on-Sale Clause
A concise definition for the California Real Estate Exam study guide.
Definition
A loan provision allowing the lender to demand full repayment when the property is transferred. Federal law preempts most state restrictions on enforcing this clause.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 5: Finance, Mortgages & Loan Types →