Finance
A 'due-on-sale' clause in a mortgage contract:
ARequires the entire loan balance to be paid when the property is sold✓ Correct
BRequires the buyer to pay points at closing
CAccelerates the loan only if the borrower defaults on payments
DAllows the buyer to assume the mortgage without lender approval
Explanation
A due-on-sale (alienation) clause requires the full outstanding loan balance to be paid when the property is sold or transferred. It prevents loan assumption without lender approval. Most conventional mortgages contain due-on-sale clauses.
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