Alienation Clause

An alienation clause in real estate refers to a contractual provision that restricts or regulates the transfer of ownership or interest in a property. Typically found in mortgage agreements or leases, this clause outlines the conditions under which the property can be sold, transferred, or leased by the current owner or tenant. It may specify requirements such as obtaining the lender’s approval before selling the property, paying off the mortgage in full before transferring ownership, or prohibiting subleasing without the landlord’s consent.

For example, in a mortgage agreement, an alienation clause might stipulate that the borrower must repay the outstanding loan balance in full if they sell the property before the mortgage term expires. Similarly, in a commercial lease agreement, the landlord may include an alienation clause to regulate the tenant’s ability to assign or sublet the leased space.

Alienation clauses serve to protect the interests of the parties involved in real estate transactions and maintain the stability and financial security of the property. They provide clarity and guidance on the permissible actions regarding the transfer of ownership or occupancy rights, ensuring compliance with legal requirements and contractual obligations.