Call Provision | Propertylogy

Call Provision

By on November 29, 2018

A call provision is a clause written into loan contracts whereby lenders are given the right to recall the debt due to the occurrence of certain events.

Much like provision clauses that home buyers include in agreement of sale contracts, call provisions help protect lenders from unpaid and bad debts.

One of such clauses is the acceleration clause which a lender can trigger to demand full repayment of a home loan should the property be sold.

Other such clauses include those concerning:

  • Bankruptcy
  • Property value falling below the loan amount
  • Dragnet clauses
  • etc

Borrowers should note that many homeowners who feel that call provisions were unreasonably used have taken lenders to court.

And it seems that judges favor borrowers in such cases.

Support us on Patreon


You May Also Like...

hair1 eye1 abs1
View the latest and lowest Singapore Home Loan rates
Why friends look forward to your FAILURE
Hiring a competent agent
Best EVER excuses for being late to work

Investors and homeowners receive our newsletters. Subscribe to our list.

Get More Real Estate Knowledge & Insights From Our Newsletters

Enter your email below

Send this to a friend