Finance
A 'due-on-sale clause' in a mortgage agreement means:
AThe lender must be paid additional fees when the property is sold
BThe full loan balance becomes immediately due and payable when the property is sold✓ Correct
CThe buyer must obtain a new appraisal at their expense
DThe seller must pay the remaining balance within 30 days
Explanation
A due-on-sale (alienation) clause requires the borrower to pay off the mortgage in full if the property is sold or transferred. This clause prevents buyers from assuming the loan without lender approval.
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