HopefullyInLawSchool
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Simple English definitions for legal terms
power of sale
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A quick definition of power of sale:
Power of sale is a legal right that allows someone to sell a property if the owner doesn't pay their debts. It's like having a special permission to sell something that doesn't belong to you. There are many different types of powers, but this one is specifically related to selling property. It's important to pay your debts on time so you don't have to worry about someone else having the power to sell your property.A more thorough explanation:
Definition: Power of sale refers to the legal right or authorization given to a lender to sell a property without going to court in order to recover the unpaid mortgage debt. It is a clause included in a mortgage agreement that allows the lender to sell the property if the borrower defaults on the loan.
Example: John took out a mortgage to buy a house. The mortgage agreement included a power of sale clause that allowed the lender to sell the property if John failed to make his mortgage payments. Unfortunately, John lost his job and was unable to keep up with his payments. As a result, the lender exercised their power of sale and sold the property to recover the unpaid debt.
This example illustrates how a power of sale clause gives the lender the legal right to sell a property without going to court in order to recover the unpaid mortgage debt.