Finance
A Connecticut buyer obtains a mortgage with a 'due-on-sale' clause. This means:
AThe mortgage becomes due when the property taxes are paid
BThe lender may require full repayment of the loan when the property is sold or transferred✓ Correct
CThe seller must pay off the mortgage before the buyer can purchase
DThe mortgage converts to a balloon payment after 5 years
Explanation
A due-on-sale (or acceleration) clause requires the borrower to pay off the entire mortgage balance when the property is sold or title is transferred without lender consent. This prevents loan assumptions without approval.
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