Contracts
An alienation clause (due-on-sale clause) in a mortgage requires:
AThe borrower to pay additional insurance when alienating the property
BThe full loan balance to be paid when the property is sold or transferred✓ Correct
CThe buyer to be pre-approved by the lender
DThe seller to pay off all liens before closing
Explanation
An alienation clause (due-on-sale clause) requires the remaining loan balance to be paid in full when the property is sold or transferred. This prevents buyers from assuming the loan without lender approval.
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