Definition - What does Conversion Clause mean?
Conversion clause refers to a clause which changes a mortgage loan from an adjustable rate mortgage to a fixed rate mortgage or that lets the borrower to go from interest-only construction financing to lower rate of interest.
Justipedia explains Conversion Clause
A conversion clause is also seen as a clause included in real estate contracts. It allows the owner to retain any property left on the premises of the real estate after the closing. The owner has complete right to use the left-over property as he deems fit.