Finance
A Florida property is subject to a mortgage with a 'due-on-sale clause.' This clause means:
AThe property can be sold only after 5 years
BThe entire mortgage balance becomes due when the property is sold or transferred✓ Correct
CThe mortgage payment doubles when the property is listed for sale
DThe borrower must pay a sales commission to the lender upon sale
Explanation
A due-on-sale clause (also called an acceleration clause) in a mortgage requires the entire loan balance to be paid immediately when the property is sold or transferred. It prevents buyers from assuming the existing mortgage without lender approval.
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