Spurgeon v. Drumheller

Opinion

LEWIS, J.

I

Facts

Appellant George J. Drumheller entered into a written contract on May 1, 1982, to purchase respondents Charles and Sally Spurgeon’s residence for $385,000. The terms of sale were Drumheller would take “subject to” two existing deeds of trust, one of which had a balance of $212,000 and was held by Far West Savings and Loan, a state chartered savings institution, and contained a “due on sale” clause. At that time, Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 [148 Cal.Rptr. 379, 582 P.2d 970], precluded enforcement of a due on sale clause by state chartered…