Property Ownership

A Florida property owner transfers title to their home into a living revocable trust. This transfer:

ATriggers a 'due-on-sale' clause in the existing mortgage
BDoes not trigger a due-on-sale clause when the transfer is to a revocable living trust of the original borrower under the Garn-St. Germain Act✓ Correct
CRequires a new deed and new title insurance policy
DVoids the homestead exemption

Explanation

The Garn-St. Germain Depository Institutions Act exempts transfers to certain family trusts and revocable living trusts from due-on-sale clauses, allowing borrowers to place their homes in living trusts for estate planning without triggering mortgage acceleration.

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