Finance
A 'due-on-sale' clause in a mortgage requires:
AThe buyer to make a larger down payment upon resale
BThe entire loan balance to be repaid when the property is sold or transferred✓ Correct
CThe lender to approve the sale before it is finalized
DThe seller to pay a prepayment penalty
Explanation
A due-on-sale (or alienation) clause requires the full loan balance to be paid when the property is sold or transferred. It prevents buyers from assuming the existing mortgage without lender approval.
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