Finance
A 'due-on-sale' clause in a mortgage requires:
AThe buyer to pay all closing costs
BThe seller to pay off the mortgage when the property is sold✓ Correct
CThe lender to approve any property improvements
DThe borrower to make a balloon payment after five years
Explanation
A due-on-sale (acceleration) clause requires the entire outstanding loan balance to be paid in full when the property is transferred to a new owner, preventing loan assumption without lender approval.
Related Montana Finance Questions
- In Montana, a buyer using a VA-guaranteed loan must:
- Private mortgage insurance (PMI) is typically required when:
- In Montana, 'impounds' (or 'escrow accounts') required by lenders hold monthly reserves for:
- A participation mortgage allows the lender to:
- A fully amortizing mortgage loan is one in which:
- In Montana, a 'construction loan' differs from a permanent mortgage in that:
- A VA loan benefit is available to:
- In Montana, a 'hard money loan' is characterized by:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →