Finance
Which mortgage clause requires the borrower to make regular payments and pay off the loan upon sale of the property?
ADefeasance clause✓ Correct
BAcceleration clause
CAlienation clause
DSubordination clause
Explanation
A defeasance clause provides that when the borrower has paid the mortgage debt in full, the lender's lien is defeated (released) and the borrower regains full unencumbered ownership. This is the clause that triggers reconveyance of the deed of trust or release of the mortgage upon payoff.
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