Finance
A 'due-on-sale' clause in a mortgage or deed of trust requires:
AThe buyer to assume the seller's existing loan
BThe full loan balance to become immediately due and payable when the property is sold or transferred without lender consent✓ Correct
CThe seller to pay off the mortgage at least 90 days before closing
DThe lender to reduce the interest rate when the property is sold
Explanation
A due-on-sale (alienation) clause in a mortgage or deed of trust allows the lender to call the entire loan balance due and payable if the property is sold or transferred without the lender's prior approval, preventing unauthorized loan assumptions.
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