Alienation Clause(redirected from Alienation Clauses)
Also found in: Legal.
A clause in a mortgage contract requiring that the owner of a property (that is, the debtor on the mortgage) pay the remaining balance of the mortgage should the property be sold. The alienation clause ensures the bank is repaid in full when the ownership of a property changes. Because of an alienation clause, a potential seller usually seeks to sell a property for at least as much as the remaining balance.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved