Contracts
A Massachusetts property under a purchase agreement has a defeasance clause in the mortgage. This clause:
ATerminates the mortgage when the property is sold
BReturns title to the borrower when the mortgage is fully paid✓ Correct
CAccelerates the loan upon default
DRequires the borrower to maintain homeowner's insurance
Explanation
A defeasance clause in a Massachusetts mortgage states that the mortgage is defeated (rendered void) and title is restored to the borrower (or their rights are confirmed) when the debt is fully repaid.
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