Alienation Clause

A clause in a mortgage contract that requires full payment of the balance of a mortgage at the lender's discretion if the property is sold or the title to the property changes to another person. Nearly all mortgages have an alienation clause.

Investopedia Says:
An alienation clause protects a lender by preventing a borrower from assigning debt without the lender's approval. An alienation clause protects the lender from credit risk of the original borrower, or third-party credit risk if the original borrower assigns the debt to another party.

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Type of acceleration clause allowing the lender to demand full payment when mortgaged property is conveyed to another owner. An example is a Due-On-Sale clause in a mortgage deed. See also Assumable Mortgage.

A provision in a document permitting or forbidding a person from transferring property that is the subject of the document.

In a fire insurance policy, an alienation clause prohibits the alienation of the insured premises while the policy is in effect. If the insured violates this provision, the policy is void.