A due-on-sale clause requires a buyer to pay the full amount of the remaining balance on a loan or to finance the balance at prevailing interest rates.

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A due-on-sale clause is a provision in a loan agreement that requires the borrower to pay the full amount of the remaining balance on the loan if the property securing the loan is sold or transferred to another party. The borrower may also have the option to refinance the balance at prevailing interest rates. This clause is intended to protect the lender's security interest in the property and prevent the borrower from transferring ownership without their consent.

A Due-On-Sale Clause Requires a Buyer to Pay the Full