Finance
A due-on-sale clause in a mortgage means:
AThe buyer must pay off the seller's mortgage at closing
BThe full loan balance becomes due when the property is sold or transferred✓ Correct
CThe seller owes a penalty if they sell before 5 years
DThe lender must approve any lease of the property
Explanation
A due-on-sale clause (also called an alienation clause) requires the borrower to pay off the mortgage in full when the property is sold or transferred. This prevents buyers from assuming loans without lender approval.
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