Assumption Clause
Definition
- A provision in a mortgage contract that enables the buyer to assume or take responsibility for the existing mortgage loan from the seller.
Synonyms
transfer, stipulation, acquirement clause, take over, fine print
Related Terms and Acronyms
- Assignment — Definition,
- The transfer of a mortgage from one person to another.
- Assumability — Definition,
- The ability of a mortgage to be taken over from the original borrower by a new borrower.
- Assumable — Definition,
- A loan or obligation that can be taken over by a new borrower.
- Assumable Mortgage — Definition, Very Important,
- A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Mortgage Acceleration Clause — Definition, Important,
- A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
- Mortgage Assumption — Definition, Important,
- Taking over the payment and responsibility for an existing property loan.
