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<p class="MsoNormal">The problem arises is how does the property appraiser and tax collector deal with the real estate contract. When recorded, do their records reflect the contract vendor or vendee. If they make the change and a tax bill is issued in the name
of the vendee/purchaser, when the Lender verifies the payment of the property taxes, they can then move to enforce the due on sale clause. Also, regarding property insurance. Whose name will appear on the property insurance? The change in name can also alert
the Lender.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Be careful. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Cordially,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Nestor Gorfinkel, Attorney at Law<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Licensed in Florida & Washington State<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Florida Civil-Law (International) Notary<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> Wednesday, December 6, 2023 7:02 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Due on Sale Clauses and Real Estate Contracts<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">What is the experience of people under this scenario (and I know I need to read the loan documents)? Client wants to buy commercial property with an existing first lien.
Client doesn’t have the money to pay off the first lien but the seller is willing to carry the balance financing. Parties contemplate that the Client will pay both the existing loan and the seller carryback loan. Title company is
<i>suggesting</i> that a Real Estate Contract might be able to get around the Due on Sale Clause in the existing loan because title does not vest in the Client/Buyer until the financing is paid in full. This doesn’t quite pass the smell test for me. In this
age of rising interest rates (or, at least, higher interest rates), are lenders really not calling in their loans under the standard Due on Sale Clause if the parties use a Real Estate Contract? What is the experience of the title companies?<o:p></o:p></span></p>
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