Finance
A New Jersey homeowner's mortgage has a 'due-on-sale' clause. This means:
AThe buyer must pay the full purchase price in cash
BThe entire outstanding loan balance becomes due when the property is sold✓ Correct
CThe seller owes a prepayment penalty
DMonthly payments increase when the property is listed for sale
Explanation
A due-on-sale clause (alienation clause) requires the entire mortgage balance to be paid off when the property is transferred. This prevents buyers from assuming the seller's existing mortgage without lender approval.
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