What Is Alienation in Real Estate? All You Need to Know

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Written By Tommy

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

If you’re a homeowner, you know that your home is more than just a roof over your head. It’s also an investment. And like any investment, there are risks involved. One of those risks is alienation. So what is alienation in real estate? Read on to find out!

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What is Alienation in Real Estate?

What is alienation in real estate? Alienation is the legal process of transferring property ownership from one person to another.

How does the alienation clause work?

If a mortgage contract has an “alienation clause” or “due on sale” provision, it means that if a borrower sells the property or transfers the title, the lender can demand full payment of the mortgage balance. This means that any proceeds of the sale will be used to pay for the mortgage before anything goes to the buyer.

If a seller has an existing mortgage, they cannot simply pass their home loan to the buyer. The new owner will have to apply for their own mortgage loan under current interest rates and real estate market conditions.

If the owner’s mortgage contract does not have an alienation clause, it is known as an assumable mortgage, which means it can be passed on to a new owner.

The Different Types of Alienation

When you own a piece of property, you may feel like it’s yours and yours alone. But in reality, there are different types of alienation that can come into play.

Here’s a look at the different types of alienation and how they can affect your property rights.

1. Voluntary Alienation

This is when you, the property owner, willingly give up your ownership rights. For example, you may sell your property or give it away as a gift.

2. Involuntary alienation

This is when you’re forced to give up your ownership rights, usually due to foreclosure or eminent domain.

3. Legal Alienation

This is when a court orders that your property be sold in order to satisfy a debt or judgment.

4. Equitable Alienation

This is when your property is transferred to another party due to a divorce or other legal proceeding.

5. Constructive Alienation

This is when your property is effectively taken away from you, even though you still technically own it. For example, if your property is subject to a lien or tax deed, you may not be able to use or sell it.

No matter what type of alienation you’re facing, it’s important to understand your rights and options. If you have any questions about your property rights, be sure to speak with an experienced real estate attorney.

How Can Alienation Be Prevented?

There are a number of ways to prevent alienation in real estate:

  1. Make sure that all contracts and agreements are in writing and that all parties involved understand the terms of the agreement.
  2. Do not allow any changes to be made to the property without the written consent of all parties involved.
  3. Be clear about who owns the property and who has the right to use it.
  4. Do not allow anyone to use the property for illegal or harmful activities.
  5. Make sure that all parties involved in the property are aware of their rights and responsibilities.

The Consequences of Not Preventing Alienation

If you don’t prevent alienation in your real estate business, you could face some serious consequences. For one, you could lose money.

Alienation can cause a property to lose value, and if you’re not careful, you could end up selling it for less than you paid for it. Another consequence of not preventing alienation is that you could end up in court.

If someone feels that they’ve been alienated from their property, they could sue you. This could cost you time and money, and it could damage your reputation.

Lastly, if you don’t prevent alienation, you could end up harming yourself or others. Alienation can lead to violence, and it can also cause people to abandon their property.

If you’re not careful, you could end up putting yourself or others in danger. These are just a few of the consequences of not preventing alienation in your real estate business.

If you’re not careful, you could face serious financial, legal, and personal consequences. So, be sure to take steps to prevent alienation in your business.

Frequently Asked Questions

What is an example of an alienation clause?

An alienation clause is a clause in a contract that limits or prohibits the transfer of ownership of the property.

What does alienation mean?

The legal definition of alienation in real estate is the transfer of title to real property from one person to another.

What is an alienation payment?

An alienation payment is a fee that is paid in order to transfer property ownership from one person to another.

What is the difference between alienation and transfer?

The difference between alienation and transfer is that alienation is the sale of real property by the owner, while transfer is the conveyance of real property from one person to another.


So what is alienation in real estate? Separation occurs when someone other than the owner takes possession of the property without the owner’s consent. This can happen through foreclosure, eviction, or eminent domain.

Basically, if you no longer have control over your property, then it has been alienated from you.