Definition
Due on sale clause is the loan provision requiring full repayment when property ownership changes. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Due on sale clause on the board and restates it: “Loan provision requiring full repayment when property ownership changes.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Due on sale clause as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Due date
Specific date by which a payment, task, or obligation must be completed.
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Due Diligence
Comprehensive investigation and analysis before making business decisions.
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Due process
Legal requirement for fair treatment and proper procedures in decision-making.
Read definition →
Duopoly
Market structure dominated by two companies controlling most of the market.
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