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 that is used when purchasing residential real estate in the state of Pennsylvania. The document outlines the terms and conditions of the sale, including the amount of money being borrowed to purchase the property and any security being offered. The due-on-sale clause stipulates that if the property is sold, then the entire outstanding balance on the loan must be paid in full, and the deed of trust will become null and void. This applies even if a new buyer is taking over the existing loan. The due-on-sale clause also applies if an owner decides to rent out the property with a tenant-landlord agreement. In this case, the owner must either pay off the loan or refinance it under the tenant-landlord agreement. In either case, the due-on-sale clause is designed to protect the lender by making sure that the loan is paid in full if the property is sold.

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

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

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