What is indicated by "Due on Transfer - Strict" in a Deed of Trust?

Get ready for the Colorado Real Estate Exam. Utilize mock exams and targeted study questions for optimal preparation. Understand the exam format and maximize your chances of success with expert tips and guidance.

"Due on Transfer - Strict" in a Deed of Trust indicates that the entire loan balance must be paid in full whenever the property is sold or otherwise transferred. This condition acts as a protective measure for the lender, ensuring that they can demand full repayment of the loan at the time of transfer. It restricts the borrower's ability to transfer the property without settling the existing loan, leading to the requirement of paying off the entire amount. This option is particularly relevant in scenarios where lenders want to maintain tighter control over the loans they have extended, as it prevents unintended or automatic assumptions of the mortgage by a new owner.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy