Finance
A Kentucky homebuyer's loan has a 'due-on-sale' clause. This means:
AThe buyer must pay off the loan when the property value doubles
BThe entire loan balance becomes due if the property is sold or transferred✓ Correct
CThe seller must pay the loan balance at closing
DInterest rates adjust when the property is sold
Explanation
A due-on-sale (alienation) clause requires that the full loan balance be paid off when the property is sold or transferred, preventing loan assumption without lender approval.
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