Finance
An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:
AThe seller must pay off the loan before the sale closes
BThe buyer assumes the existing loan with no lender approval needed
CThe full remaining loan balance is due upon transfer of the property✓ Correct
DThe new buyer must refinance within 12 months
Explanation
A due-on-sale clause (alienation clause) requires the full loan balance to be paid upon transfer of the property. This prevents buyers from assuming loans without lender approval.
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