Wellenkamp v. Bank of America

*946Opinion

MANUEL,

We address today the question whether enforcement of a due-on clause,1 contained in a deed of trust securing real property, upon an outright sale of that property, constitutes an unreasonable restraint on alienation in violation of California law.

In July 1973, Birdie, Fred and Dorothy Mans (Mans) purchased a parcel of real property in Riverside County which they financed by a loan from defendant Bank of America in the amount of $19,100 (at 8 percent interest per annum) giving the bank their promissory nóte secured by a deed of trust. The deed of trust contained the standard…