Contracts
Which clause in a Massachusetts mortgage allows the entire loan balance to become due immediately if the property is sold?
ADefeasance clause
BDue-on-sale (alienation) clause✓ Correct
CAcceleration clause for default
DPrepayment penalty clause
Explanation
A due-on-sale (alienation) clause requires the loan to be paid in full when the property is sold or transferred, preventing the buyer from assuming the existing mortgage without the lender's approval.
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