, a Partner in the firm's Real Estate practice and Marc Selden
, Counsel in the Trust & Estate practice, will be jointly delivering a webinar about the Garn-St.Germain Depository Actexclusions which can allow a transfer of certain residential real estate to a Revocable Living Trust without triggering due on transfer provisions. The program is being held on Wednesday, March 23rd, from 1:00 pm to 2:30 pm, as part of Strafford's
continuing professional education program for attorneys and accountants.
Almost every mortgage agreement on real property contains a due on sale/due on transfer clause, which allows the lender to demand payment in full of the amount due on the loan. An important exception to the enforce-ability of these provisions is found in the Garn-St. Germain Depository Institutions Act, which exempts transfers of certain residential real property from enforcement of the "due-on-sale" provisions. While the Act has been law for over thirty years, attorneys often find applying the provisions of the exemption to be challenging.
The Act protects transfers of certain residential real property into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property. For attorneys, an understanding of what property is eligible for the exemption, how to properly draft trust documents, and how to structure transfers of the property into the trust are critical.
Jay and Marc will provide a "real world" guide to structuring trusts to protect residential real property assets from triggering acceleration clauses in mortgage documents. To learn more about the webinar and to register, click here.