Miranda

Plaintiffs Angel and Mary Miranda, James and Patricia Unger and Juan and Ma Teresa Hernandez appeal a judgment of foreclosure ordering the sheriff to sell certain real property to satisfy a lien secured by a deed of tmst. We hold the trial court erred in refusing to apply the rationale of Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 [ 148 Cal.Rptr. 379 , 582 P.2d 970 ], and reverse.

Factual and Procedural Background

On March 29, 1978, the Mirandas and the Ungers purchased certain commercial real property from Salvador Macias. Macias took back a promissory note secured by deed of tmst, both containing a standard due-on-sale clause. On August 25, 1978, our Supreme Court in Wellenkamp v. Bank of America, supra, 21 Cal.3d 943, 953 , prohibited institutional lenders from enforcing due-on-sale clauses in promissory notes or tmst deeds upon an outright sale unless the lender demonstrates enforcement is reasonably necessary to prevent impairment of security or risk of default. On April 17, 1979, the Mirandas and the Ungers conveyed the cited real property to the Hernandezes without Macias’ written consent. Relying on the due-on-sale provision, Macias filed a notice of…