Which of the following transfer of property provisions is NOT found in a Colorado Real Estate Commission-approved Deed of Trust?

Rationale

1% interest increase is NOT found in a Colorado Real Estate Commission-approved Deed of Trust.

In a Colorado Deed of Trust, the provisions typically address the transfer of property rights, but an explicit clause regarding a 1% interest increase is not a standard feature. The other options represent common terms and conditions related to property transfers.

A (Assumable - Not due on sale) YOUR ANSWER

This provision indicates that a loan can be assumed by a buyer without triggering a due-on-sale clause, allowing for the continuation of the existing loan terms. This is a common feature in Deeds of Trust, making it a standard provision in Colorado.

C (Strict Due-on-Sale) YOUR ANSWER

A strict due-on-sale clause requires that the entire loan balance must be paid if the property is sold or transferred. This is a common provision included in many Deeds of Trust, ensuring the lender can call the loan due upon transfer of ownership.

D (Creditworthy) YOUR ANSWER

This provision typically refers to the requirement that the new owner must be creditworthy in order to assume the existing mortgage or loan. It is a standard aspect of many Deeds of Trust, as lenders often impose this condition to mitigate risk when a loan is transferred.

Conclusion

In summary, a Colorado Real Estate Commission-approved Deed of Trust includes provisions addressing assumptions, due-on-sale clauses, and creditworthiness, all of which are standard and relevant to property transfers. However, the specific clause regarding a 1% interest increase is not a recognized provision in these deeds, distinguishing it as the correct answer in this context.

Which of the following transfer of property provisions is NOT found in a Colorado Real Estate Commission-approved Deed of Trust?

1% interest increase is NOT found in a Colorado Real Estate Commission-approved Deed of Trust.

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