Selling or Transferring California Real Estate that Is Subject to a “Due on Sale” Clause

Author: Staff Most real estate purchases require some form of financing. Banks that issue loans for the purchase of real estate protect their investments in several important ways. The most well-known is the deed of trust, by which the borrower conveys a security interest in the property to the lender. If the borrower defaults on loan payments, the deed of trust gives the lender the right to foreclose on the property. Most deeds of trust contain a “due on sale” clause, which is another way banks protect their interests. This clause limits a property owner’s ability to transfer title to their property. It is worth noting that enforcement of due-on-sale clauses is fairly rare, but it is still an important issue for California real estate investors to understand. Due-on-Sale Clauses Continue reading The post Selling or Transferring California Real Estate that Is Subject to a “Due on Sale” Clause appeared first on Titles and Deeds.

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