Legal Question in Real Estate Law in Massachusetts

I am applying a HELOC. There is a clause for Assignment of Rents, saying " The Mortgagor unconditionally assigns and transfers to the Lender all the rents and revenue of the Property..." I am wondering if this means that as soon as I rent the property out, I have to pass the rental income to the lender? I googled around and most people are saying this clause only kicks in when I default on the payment. Thank you!


Asked on 4/01/11, 9:16 pm

1 Answer from Attorneys
Stephanie Burnham Burnham & Associates, Attorneys at Law, PLLC

Without reviewing the document in full: this clause routinely applies in the event there is a default on payment of the HELOC. It is part of the HELOC lender's ability to collect the payments due upon default of the loan.

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Answered on 4/19/11, 1:11 pm


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