Why Due‑on‑Sale Clauses Matter

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.

For related posts and primary authority, see: Due‑on‑Sale Clause.