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Will transferring the property violate the “Due on Sale” Clause in my mortgage?
Transferring to a land trust does not violate a "Due on Sale" clause.
A “Due on Sale” clause is a common part of many mortgage agreements. In short, the clause prevents transferring a property without the lender’s permission. Unlike transferring a property to an LLC, which technically violates the clause but is largely unenforced as long as the payments are timely, transferring a property from your own name into a land trust will constitute a valid estate planning technique protected under federal law and, therefore, will not violate the “Due on Sale” clause in your mortgage agreement.