Finance
A 'due-on-sale' clause in a deed of trust allows the lender to:
AIncrease the interest rate when the property is sold
BDemand full repayment of the loan when the property is transferred to a new owner✓ Correct
CRequire the buyer to assume the seller's existing loan
DReduce the loan balance when property values decline
Explanation
A due-on-sale (or acceleration) clause requires the borrower to pay off the entire remaining loan balance if the property is sold or transferred. This prevents buyers from assuming below-market-rate loans without lender approval.
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