Finance
What is a due-on-sale clause in a Nevada mortgage or deed of trust?
AA clause requiring the seller to pay off the mortgage before closing
BA clause allowing the lender to demand full repayment if the property is sold or transferred without the lender's approval✓ Correct
CA clause making interest due at the time of sale
DA clause protecting the buyer from assuming an underwater mortgage
Explanation
A due-on-sale (alienation) clause allows the lender to require full repayment of the mortgage when the property is sold or transferred. It prevents buyers from assuming existing low-interest loans without lender approval.
Related Nevada Finance Questions
- A Nevada borrower has a $350,000 30-year fixed mortgage at 6.5% interest. Using the factor table, the monthly payment factor is $6.32 per $1,000. What is the monthly principal and interest payment?
- What is a deficiency judgment in Nevada and when can it be pursued after foreclosure?
- What is a bridge loan in Nevada real estate?
- What does the Truth in Lending Act (TILA) require Nevada lenders to disclose?
- A VA loan is available to eligible veterans and offers:
- What is a hard money loan in the context of Nevada real estate investment?
- What is a conforming loan limit and how does it affect Nevada buyers?
- A Nevada home buyer obtains a 30-year fixed mortgage at 7% for $400,000. What is the approximate monthly principal and interest payment?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →