Due‑on‑sale clauses are most commonly found in loans secured by real property, particularly mortgages and deeds of trust.
They are tied to the transfer of real estate collateral, not merely to changes in a borrower’s financial condition.
While other types of loans may contain acceleration provisions, the term due‑on‑sale clause is primarily associated with real‑estate lending.
For related posts and primary authority, see: Due‑on‑Sale Clause.
Hani Sarji
New York lawyer who cares about people, is fascinated by technology, and is writing his next book, Estate of Confusion: New York.
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