Finance
What is a 'due-on-sale clause' in a mortgage, and what does it mean for Illinois property transfers?
AA requirement that property taxes be paid before transfer can occur
BA lender's right to demand full repayment of the loan when the property is sold or transferred✓ Correct
CA clause requiring the buyer to assume the seller's existing loan
DA provision allowing the interest rate to increase when the property is sold
Explanation
A due-on-sale clause (also called an acceleration clause) gives the lender the right to demand full repayment of the mortgage when the property is sold or transferred. This prevents buyers from simply assuming the seller's existing mortgage without lender approval.
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