49.4k views
3 votes
Which of the following transfer of property provisions is NOT found in a Colorado Real Estate Commission approved Deed Trust ?

A . Assumable - Not due on sale.
B. 1% interest increase
C. Strict Due - on - Sale.
D. Creditworthy

1 Answer

3 votes

Final answer:

The provision that is NOT found in a Colorado Real Estate Commission approved Deed Trust is a 1% interest increase.

Step-by-step explanation:

The provision that is NOT found in a Colorado Real Estate Commission approved Deed Trust is B. 1% interest increase.

A Deed Trust, also known as a deed of trust, is a legal document used in real estate transactions to secure a loan. It outlines the terms of the loan and conveys the property to a trustee who holds it as security for the lender. The trustee can initiate foreclosure if the borrower defaults on the loan.

In Colorado, a Real Estate Commission approved Deed Trust typically includes provisions such as an assumption clause that allows the loan to be assumable without triggering a due-on-sale clause, strict due-on-sale provisions that require the loan to be paid in full upon sale or transfer of the property, and the requirement that the borrower is creditworthy. However, a 1% interest increase provision is not typically included in a Colorado Real Estate Commission approved Deed Trust. This provision would allow for an increase in the interest rate by 1% under certain circumstances.

User MilapTank
by
8.2k points