Get a real estate loan will most likely be a “due on sale” clause. The provision of basic on-sale allows the bank or financial institution to the note at any time, the building is sold. A call to the note makes the entire balance due immediately.

A transfer to a trust with a Trust Deed is as a sale by the banks. A transfer of ownership of land among family members than a sale. A transfer from the name of a person in a business entity as a limited liability company or a company, the same shall be deemed a sale. In none of these transfers of real estate transfer tax is treated as a sale by the bank or the bank and the loan balance due immediately. There is one exception, the transfers of trust property 1-4 family residential properties or houses.

Transfer of Trust 1-4 family properties and single family homes are against the “due on sale” clause of the Garn-St Germain Depository Institutions Act (“the Act”) are protected. The law prevents a lender from exercise due-on-sale clause, a transfer to an inter vivos trust in which the borrower is and remains a beneficiary and which do not relate to a transfer of property rights in the property.
» Read more: Beware of the “Due-On-Sale Clause” in Your Loan