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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Assumption Clause


Synonyms:acquirement clause, fine print, stipulation, take over, transfer
Filed Under: legal-contracts, mortgages, real-estate
Tags: clause, contract, legal, mortgage, realty
 

Definition of assumption clause

assumption clause
1. A provision in a mortgage contract that enables the buyer to assume or take responsibility for the existing mortgage loan from the seller.

Related Terms and Acronyms:

  • assignment   The transfer of a mortgage from one person to another.
  • assumability   The ability of a mortgage to be taken over from the original borrower by a new borrower.
  • assumable   A loan or obligation that can be taken over by a new borrower.
  • assumable mortgage   A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
  • contract   An agreement between two or more parties that can be enforced by law.
  • mortgage acceleration clause   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   Taking over the payment and responsibility for an existing property loan.

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