Finance
A Florida buyer obtains a mortgage with a 'due-on-sale' clause. This clause means:
AThe mortgage is automatically paid off if the property is sold
BThe lender may require full repayment of the loan if the property is transferred to a new owner✓ Correct
CThe buyer must pay off the loan within five years
DThe seller must pay any outstanding balance at closing
Explanation
A due-on-sale (alienation) clause allows the lender to demand full repayment of the outstanding loan balance when ownership of the property is transferred. This prevents buyers from assuming old mortgages without lender approval.
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