Power-Of-Sale Clause Law and Legal Definition

A power-of-sale clause is a clause found in a mortgage deed that authorizes the lender to sell the property in the event of default by a mortgagee. Such power helps the lender in repaying the mortgage debt.

This clause may also be inserted in a trust deed. It refers to a power expressed or implied in a trust agreement that empowers the trustee to sell the investments comprising the trust.

A "power of sale clause" is a provision in a mortgage or deed of trust permitting the mortgagee or trustee to sell the property without court authority if the payments are not made. [Morrison v. Christie, 266 S.W.3d 89, 95 (Tex. App. 2008)].