Finance
Which of the following mortgage provisions allows the lender to demand full repayment of the loan if the property is sold or transferred without the lender's approval?
APrepayment penalty clause
BAcceleration clause
CDue-on-sale (alienation) clause✓ Correct
DSubordination clause
Explanation
A due-on-sale clause (also called an alienation clause) gives the lender the right to demand full repayment of the loan upon sale or transfer of the property. This prevents buyers from assuming the seller's low-interest mortgage without lender approval.
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