Clauses Flashcards - defines or limits the extend of ownership in th...

Clauses Flashcards Habendum ClauseThe deed clause beginning "To have and Hold", which defines or limits the extend of ownership in the state granted by the deed Alienation ClauseClause in a mortgage instrument that prevents a borrower from selling a property or from allowing an assumption of the existing mortgage without lender approval. If an attempt is made to do so without prior approval, the entire remaining mortgage balance becomes due before the property can be transferred Open End ClauseProvision in a mortgage contract that allows the mortgaged real estate to be used as security to borrow additional money.Subordination ClauseA clause in an agreement which states that another agreement will take priority over it. Allows a mortgage to be added at a later date which will take priority over an existing mortgage, such as when an owner re-finances a piece of property that already has a second mortgage, and the re-financing lender requires the second mortgage provider to add a subordination cause which gives the re-financing loan priority over the second mortgage.Release ClauseClause in a blanket mortgage which gives the property owner the right to pay off a portion of the debt, thereby freeing a portion of his property from the mortgage.Acceleration ClauseA clause that allows a lender to "call" a loan and demand immediate repayment of the entire loan. Adding this clause does not limit the negotiability of the note.Defeasance ClauseA clause used in leases or mortgages that cancels a specified right on the occurrence of a certain condition, such as cancellation of a mortgage on repayment of the mortgage loan.