[WSBARP] Does the Garn St. Germain Act Due on Sale preemption apply to Seller Financed Loans?

[Mark Anderson]

According to my Google search results, it seems to be the consensus that transfers to children are exempt from execution of the due on sale clause.  With the broad definition of "lender" in the Garn St. Germain Act, seller financing would not appear to be an exception.

Mark B. Anderson
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Julie Martiniello
Sent: Thursday, October 31, 2024 9:27 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Does the Garn St. Germain Act Due on Sale preemption apply to Seller Financed Loans?

Hello All,

I have a client needing to transfer part of their property to a child. There is a loan on the property that is seller financed. I have read the Garn St. Germain Act and do not see that a seller financed loan is exempted from the provisions of the due on sale preemption, but I thought I read somewhere that seller financing was excluded from this- however now I cannot seem to find where I read that.

Anyone know of the top of their head?

--

Respectfully,

Julie Martiniello, Partner
Dimension Law Group, PLLC
Office:  206-973-3500│Fax:  206-577-5090
Email: julie at dimensionlaw.com<mailto:synthia at dimensionlaw.com>
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