What is a deed of trust with a due-on-sale clause?

A deed of trust with a due-on-sale clause is a legal document used in residential real estate law in California. It is created when a borrower takes out a loan from a lender to purchase property. In the deed of trust, the borrower transfers title of the property to a trustee, who holds the property in trust. The trustee is generally a bank or other financial institution. The due-on-sale clause is an important part of the deed of trust. It allows the lender to call due, or require payment of, the loan in full if the borrower transfers title to the property to someone else. This clause gives the lender the right to take back the property if the borrower defaults on the loan. In California, the deed of trust with a due-on-sale clause is an important part of residential real estate transactions. It provides protection to the lender while also giving the borrower an incentive to repay the loan on time. The clause also helps to protect the rights of the borrower if the borrower transfers title of the property to a third party.

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What is a deed of trust with a due-on-sale clause?

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