How to get a “due on sale” clause waived?

We are in the process of trying to purchase a home on a contract for deed. However the sellers bank is mot allowing them.

Asked on March 23, 2011 under Real Estate Law, Minnesota


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When you say that the bank is "not allowing them" what do you mean?  A due on sale clause is basically an acceleration clause in a mortgage, meaning that if the owner attempts to transfer the property the mortgage becomes due and owing.  Honestly, this is not an unusual clause in a mortgage.  Lenders do not want the property - which is a security interest - transferred from party to party and making it then difficult if not impossible to foreclose should the need occur.  So I do not think that you can get the clause waived.  Speak with an attorney in your area to be sure. And maybe consider a traditional sale instead.  Good luck.

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