Duerksen

The central issue here is whether the holding of Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 [ 148 Cal.Rptr. 379 , 582 P.2d 970 ], applies to Cal-Vet contracts. We hold that it does not.

In this case a veteran purchasing a home from the Department of Veterans Affairs (Department) under a Cal-Vet contract seeks to sell the home to another before having paid the contract in full. The Department, while acknowledging that the sale poses no risk to its security interest in the property, claims authority to prevent the sale and accelerate the veteran’s debt under his contract. We agree the Department has such authority.

The Cal-Vet Program

The Veterans’ Farm and Home Purchase Act of 1974 (Act) (Mil. & Vet. Code, § 987.50 et seq.) was enacted “to provide veterans with the opportunity to acquire farms and homes.” (§ 987.51.) Under the Act, the Department is empowered to buy farms and homes from their owners and sell the properties back to eligible veterans under long-term installment contracts at a low rate of interest. Since the sale is by installments (§§ 987.69, 987.71), the Department retains legal title to a property until the price has been paid in full. (See…