Lipps v. First American Service Corp.

in this appeal we determine the validity of a “due-on sale” acceleration clause in a deed of trust. The trial court upheld the validity of the clause, and we affirm that judgment.

On July 27, 1976, Albert B. Lipps and Judith W. Lipps (Borrowers) executed a deed of trust conveying residential real estate in Prince William County to secure First American Savings and Loan Association (Lender) the payment of a promissory note for $31,500 with interest at the rate of nine and one-half percent per annum. The deed of trust contained the following “due-on sale” acceleration provision (Covenant 17):

UNIF…