FinancingHARD
Under the Garn-St. Germain Act, a due-on-sale clause cannot be enforced when property is transferred:
Correct Answer
B) To a spouse or children upon death
The Garn-St. Germain Act prohibits lenders from enforcing due-on-sale clauses in certain transfers, including transfer to a spouse upon death, transfer by inheritance, transfer to a relative upon death, and transfer to a spouse in divorce.
Answer Options
A
To any family memberB
To a spouse or children upon deathC
Only to business partnersD
To any buyer who assumes the loanVideo Explanation3 min
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Related Topics & Key Terms
Related Topics:
due-on-sale-clausesreal-estate-financingfederal-real-estate-laws
Key Terms:
Garn-St. Germain Actdue-on-sale clause12 U.S.C. § 1701j-3loan assumptiontransfer exemptions
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