The Due-On-Sale Clause is Enforceable in Texas

Date

1982

Journal Title

Journal ISSN

Volume Title

Publisher

Texas Tech Law Review

Abstract

Analyzes the issue of whether a due-on-sale clause is enforceable upon the sale of the secured property without the lender’s consent. In this case the Texas Appeals Court held that the due-on-sale clause was enforceable upon sale of the secured property since it was sold without the lender’s consent. In this case the contract stated the sale had to be approved by the lender otherwise the note was immediately due. However, the author observes how the Court’s holding still does not solve the problems associated with the depressed housing market.

Description

Keywords

Due on sale clause, Real estate, Mortgage, Beneficial interests in borrower, Sonny Arnold, Inc. v. Sentry Savings Association, Case note

Citation

13 Tex. Tech L. Rev. 129