Definition: A mortgage provision requiring the borrower to keep specified property taxes or assessments current. Failure to comply may trigger remedies under the loan documents.
Example
A homeowner's mortgage requires timely payment of property taxes even when the monthly loan payment is current.
Keep the distinction clear
The obligation to pay taxes differs from whether the lender collects monthly escrow funds for them. Read both the tax covenant and any escrow provisions.
Related terms
Mortgage · Tax Lien (Property Taxes) · Default
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: CFPB: mortgage key terms
Pronunciation (US): TAKS KLAWZ (capitals show stress)
Pronunciation reference: Merriam-Webster
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