Finance
In Colorado, a 'due-on-sale' clause in a mortgage or 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 without their consent✓ Correct
CPrevent the borrower from refinancing
DRequire the buyer to obtain a new loan from the same lender
Explanation
A due-on-sale (alienation) clause requires the entire loan balance to be paid when the property is sold or transferred, preventing loan assumption without lender approval. Most conventional loans contain this clause.
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