Legal Question in Real Estate Law in Georgia

Is an action deemed criminal if it's illegal...for example, if someone transfers a property deed to separate LLC, that has a security lien on it (with standard "Due On Sale Clause in the Security Instrument"), but continues to keep the payments on that secured debt current.....did that person break state of federal criminal laws, or is it just a contractual civil matter of violating a "Due On Sale Clause"?


Asked on 9/11/10, 4:58 am

3 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

It's a big deal, as if there is a due on sale clause, the lender can foreclose (a civil matter).

Depending on details you omitted, it MAY violate paperwork signed at closing that would constitute criminal fraud as well. Since we have not seen those documents, we can't say it is or not also a criminal problem.

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Answered on 9/16/10, 5:15 am
Matthew Purcell

Depends on the reason for the transfer, it could be criminal if it was to avoid creditors or another reason that's fraud related. Otherwise it's a civil matter but holder of the Security Deed can foreclose on the property because of violation of transfer of beneficial interest to borrower or due on sale clause.

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Answered on 9/16/10, 5:17 am


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