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 in residential real estate transactions in South Carolina. The document allows a borrower to transfer their property to a trustee in exchange for a loan. This transfer is made to secure the loan and protect the lender from default. The due-on-sale clause in the deed of trust is a provision that gives the lender the right to demand full payment of the loan if the borrower sells or transfers the property that is secured by the loan. The purpose of the due-on-sale clause is to protect the lender’s security interest in the property. In South Carolina, it is important to note that the due-on-sale clause is triggered by any transfer of the property, including a transfer by will or inheritance. When the due-on-sale clause is triggered, the lender can demand that the balance of the loan be paid in full within a reasonable amount of time. If the borrower is unable to meet this demand, then the lender can initiate foreclosure proceedings. Therefore, it is important to be aware of the due-on-sale clause when entering into a residential real estate transaction in South Carolina.

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

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