Because a due‑on‑sale clause is contractual, a lender does not need to show harm, default, or bad faith to enforce it.
If an unapproved transfer occurs, the lender may accelerate the loan based solely on that fact. A lender’s decision not to enforce the clause immediately does not eliminate the right to enforce it later.
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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