Finance
A 'due-on-sale' clause in a mortgage means:
AThe loan balance is due when the property sells✓ Correct
BPayments are due on the sale date each month
CThe seller must pay off the loan before listing
DThe loan can be assumed by the buyer without lender approval
Explanation
A due-on-sale (alienation) clause requires the entire loan balance to be paid when the property is sold or transferred. This prevents buyers from assuming existing mortgages without lender approval.
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