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206: The Hidden Risks of “Subject To” Real Estate w/Eddie Speed
On The Market
Exploring Risks and Workarounds in Real Estate Deals
The 'do on sale' clause in real estate deals requires the full loan payment if the property changes hands. However, there is a provision that allows transferring a property into a trust under Garn St. Germain Act. This provision enables individuals like Kathy to transfer their property into their own trust but not into another person's trust, hence not fully bypassing the clause. Understanding the legal framework and seeking advice from attorneys are crucial to navigate such risks in real estate transactions.
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