Jersey City New Jersey Prepayment Penalty Clauses: Contract for Real Property

• Category: Contracts - Clauses
• State: Multi-State
• City: Jersey City
• Control #: US-C-CL-590-1
• Format: Word; Rich Text

Description

A clause dictates the conditions under which the contract is legally enforceable and determines the terms of the contract. Contracts often contain boilerplate clauses or standard clauses found across most contracts. These standard clauses do not require a lot of negotiation. Included is a Sample Prepayment Penalty Clauses for a Contract for Real Property. This is a penalty that is imposed upon the borrower if they attempt to make a mortgage payment before the date or time period stated in the contract. While it may seem like mortgage lenders would prefer an early payment, in some cases the lender may actually lose profit if the mortgage is paid off too quickly.