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#123930 - 10/21/03 03:24 PM due on sale clause
LSmith Offline
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LSmith
Joined: Dec 2002
Posts: 703
Can anyone explain to me what a "Due on sale clause" is and when it is used?

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#123931 - 10/21/03 04:54 PM Re: due on sale clause
redsfan Offline
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redsfan
Joined: Dec 2000
Posts: 3,455
The Pennant Race
Essentially, Due on Sale says that if the borrower enters into a contract to sell the property, the outstanding balance of the note becomes due and payable.

A Due on Sale Clause would typically be used as part of any loan secured by property, especially real property. It prevents the borrower from selling your collateral, pocketing the proceeds, and not paying you back.
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