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

A deed of trust with a due-on-sale clause is an agreement between a borrower (debtor) and lender (creditor). It is written when a borrower wishes to purchase a piece of residential real estate. In Delaware, the deed of trust outlines the obligations of both parties, but it also allows the lender to call in the loan at any time (specifically if the property is sold). The due-on-sale clause is an important part of the agreement, as it allows the lender to call in the loan if the debtor wishes to sell the property. When the clause is triggered, the debtor must pay off the loan immediately. The lender can do this to protect their interests, since they make money through the interest that accrues on the loan. The due-on-sale clause is important in Delaware, as it allows the lender to maintain their security interest in the property and make sure it is not sold without their knowledge. It also helps ensure that the lender gets paid the full amount of the loan, plus interest, even if the buyer of the property does not have the same financial stability as the original borrower.

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

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