Finance
In Hawaii, what is a 'due-on-sale' clause in a mortgage?
AA. A clause requiring the seller to pay off the mortgage at listing
BB. A clause that makes the full loan balance due when the property is sold or transferred✓ Correct
CC. A penalty for paying off the mortgage early
DD. A clause requiring escrow for property taxes
Explanation
A due-on-sale (acceleration) clause requires the loan balance to be paid in full when the property is sold or title is transferred, preventing loan assumption without lender approval.
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