Due-on-sale clause - Posted by Mark


#1

Posted by Rob FL on December 31, 1998 at 15:52:37:

What does the trust document say? In all my trusts, the answer is NO because my trust prohibits a sale or mortgage without the consent of a majority of the beneficiaries.


#2

Due-on-sale clause - Posted by Mark

Posted by Mark on December 29, 1998 at 23:07:37:

I have been told that a buyer can get around the Due-on-sale clause on a non-assumable loan by placing a property into a title-holding trust and then conveying a portion of the trust’s beneficiary interest to the buyer rather than involving the Deed to the property. My question is that if this is done does the buyer have enough legal standing to be able to borrow against the property? Does anyone know the answer to this question?

Mark


#3

Re: Due-on-sale clause - Posted by Rob FL

Posted by Rob FL on December 30, 1998 at 18:03:31:

If buyer now has the beneficial ownership, then I don’t see why the property couldn’t be refinanced. Whether you own it your name or in trust, you still own (maybe control is a better word) the property. Bank might want someone besides the trust to guarantee the loan or even require that title be deeded to the beneficiary before loaning the money.


#4

Re: Due-on-sale clause - Posted by Mayl

Posted by Mayl on December 31, 1998 at 14:04:08:

If you own partially with another in trust can the trustee’s sell the property without your sig?