Alanfields: Created page with "Pursuant to federal law, state law prohibitions on the enforcement of due on sale clauses were pre-empted. [https://www.law.cornell.edu/uscode/text/12/1701j%E2%80%933 12 U.S..."

2018-08-18T01:00:39Z

Created page with "Pursuant to federal law, state law prohibitions on the enforcement of due on sale clauses were pre-empted. [https://www.law.cornell.edu/uscode/text/12/1701j%E2%80%933 12 U.S..."

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Pursuant to federal law, state law prohibitions on the enforcement of due on sale clauses were pre-empted. [https://www.law.cornell.edu/uscode/text/12/1701j%E2%80%933 12 U.S.C. 1701j-3] This act does not apply as to reverse mortgages.

The same provision restricts the exercise of a due on sale clause as to residential property less than 5 units, based on:
#the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;
#the creation of a purchase money security interest for household appliances;
#a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;
#the granting of a leasehold interest of three years or less not containing an option to purchase;
#a transfer to a relative resulting from the death of a borrower;
#a transfer where the spouse or children of the borrower become an owner of the property;
#a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;
#a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or
#any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

Due on Sale Clauses - Revision history

Alanfields: Created page with "Pursuant to federal law, state law prohibitions on the enforcement of due on sale clauses were pre-empted. [https://www.law.cornell.edu/uscode/text/12/1701j%E2%80%933 12 U.S..."