Great Northern Savings Co. v. Ingarra

In the past decade there have been numerous decisions regarding the enforceability of clauses such as the one contained in paragraph seven of appellees’ second mortgage deed, known as “due on sale” clauses. Some jurisdictions have held that such clauses are enforceable only when the obligee can demonstrate a threat to one of its legitimate interests regarding the property or the obligation itself.

These jurisdictions have determined that “due on sale” clauses constitute significant restraints on alienation and that enforcement of such clauses cannot be justified by any positive effect such…