- DUE-ON-SALE CLAUSE WORKBOOK
- SUBJECT-TO DEALS
- Identify, measure, and mitigate every risk tied to the due-on-sale clause.
- SECTION 1 — Understanding the Clause
- What the clause allows the lender to do: Demand full payoff · Refuse payments · Issue a 30-day demand letter · Begin foreclosure · Report delinquency. The clause is rarely enforced, but when it is, the impact is catastrophic. This workbook helps you identify the signals lenders look for.
- SECTION 2 — Title Transfer Risk Analysis
- 2.1 — How was title transferred?
- [ ] Grant Deed [ ] Warranty Deed [ ] LLC transfer [ ] Trust transfer [ ] Unrecorded deed
- Grant/Warranty → LOW | LLC transfer → HIGH | Non-exempt trust → HIGH | Unrecorded → MEDIUM
- Notes:
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