Is Seller Financing Illegal?!

This is a common question asked by home owners, but also many real estate agents and brokers. There seems to be a lot of misinformation regarding an interpretation of the Due on Sale Clause (which every mortgage loan has). I've done a couple of videos on this subject already, so search within the channel here for a more complete explanation of what the Due on Sale Clause actually is.
Right now I will address Seller Financing as it pertains to the State of Utah. The 1st order of business is regarding the State-Approved Forms available on the State's website at www.realestate.utah.gov. There is a Seller Finance Addendum and another form for an All-Inclusive Trust Deed. The division of real estate has their own staff attorneys who routinely review and create ALL of the real estate documents used by licensed real estate agents in the state. It is highly unlikely that these attorneys would condone illegal activity, much less facilitate the use of these forms on a public site.
The second point is the seller finance classes that are taught, AND REQUIRED to be taken, by all real estate agents in order to maintain their license. There is a screen shot in the video referencing 3 different Mandatory, Core Law, Seller Finance Classes. I have been co-teaching the one with Jax Pettey since 2009. In order to renew the class each year, we are required to submit information with updates and changes to confirm that the material is relevant and up-to-date. Most of the changes we have submitted over the years pertain to changes in the mortgage underwriting guidelines.
This brings up the last point. Have people been hurt or disenfranchised with a seller finance transaction? Absolutely. The same thing can be said about anyone else who has taken out a mortgage loan and didn't correctly understand all the loan features, the covenants and restrictions, and the default remedies. There is no way to eliminate 100% of the risk in any type of transaction. Therefore, the State of Utah encourages Realtors and homeowners to become educated about the process. Transparency is the key and that is why I have created dozens of videos on how to structure these transactions correctly so that the buyer and seller can enjoy buying or selling a home with clear expectations about what they are engaging in.