Posted by William Bronchick on January 29, 2002 at 09:25:17:
You are correct on every part EXCEPT the due on sale. The lender CAN call it due, even though it is not a complete sale. The due on sale is triggered for a transfer of of ownership OR ANY PART OF ownership. Federal law provides a few exceptions, but a lease/option is NOT one of them.
That having been said, it isn’t likely a lender would find out or care.