Finance
The 'due-on-sale' clause in an Indiana conventional mortgage requires:
AThe entire mortgage to be paid off before the property can be sold
BThe entire outstanding loan balance to become due upon transfer of the property to a new buyer, preventing assumption without lender consent✓ Correct
CThe buyer to assume the loan without lender approval
DThe seller to pay a transfer fee to the lender
Explanation
A due-on-sale (alienation) clause requires the full loan balance to be paid off if the property is sold or transferred. This prevents loan assumption without lender consent and is standard in most conventional mortgages.
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