Finance
A 'due-on-sale clause' in a mortgage means:
AThe property tax is due when the property is sold
BThe entire loan balance becomes due when the property is sold or transferred✓ Correct
CThe agent's commission is due at the close of escrow
DThe buyer must sell the property within a certain period
Explanation
A due-on-sale clause (acceleration clause) requires the full loan balance to be paid when the property is sold or transferred. This prevents buyers from assuming the old loan without lender approval. Most conventional loans include this clause.
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