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Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Assumption Clause

Phonetics: as·sump·tion clause \ə-'səm(p)-sh?n\   \'klȯz\

Function: noun

Definition 1:
An assumption clause is a provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.