What is a due on sale clause?

A due on sale clause is a common clause in real estate law in California that states that when a property is sold, the outstanding mortgage balance must be paid in full to the lender or bank at the time of sale. This clause is typically included in a mortgage contract and allows the lender to demand the full payment of the mortgage balance by the seller if they are selling the property. This is beneficial to the lender, as they will get the remaining balance of the loan right away, instead of waiting for the remaining payments. It also helps to keep the property secure and ensure that the lender has the right to the property until the loan is paid off. For the buyer, this clause can help to ensure that the loan is up-to-date and the property is free and clear of any debt. In California, this clause is legally binding and must be considered before any sale of a property.

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What is a due on sale clause?

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