Contracts
A 'due on sale' clause in a Louisiana mortgage prevents:
AThe property from being sold at any time
BThe buyer from assuming the seller's existing mortgage without lender approval — the full balance becomes due when the property is transferred✓ Correct
CThe property from being refinanced
DAny change in ownership for 5 years
Explanation
A due-on-sale (alienation) clause requires the full mortgage balance to be paid immediately when the property is sold or transferred without lender approval. This prevents loan assumptions without the lender's consent.
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