Alienation Clause Law and Legal Definition

Alienation clause is a deed provision which sometimes allows or sometimes prohibits further conveyance of the property. Today an alienation clause is common in every loan, which indicates that title cannot be transferred and a buyer cannot purchase subject to an existing loan without triggering a sale clause due. In the context of insurance, an alienation clause in an insurance policy voids the coverage on the insured property if the policy holder alienates the insured property.