Finance
The Garn-St. Germain Act of 1982 prohibits lenders from enforcing due-on-sale clauses when:
AThe property is sold to an unrelated third party
BThe property is transferred to a close family member by inheritance or certain intra-family transfers✓ Correct
CThe seller uses seller financing
DThe buyer assumes the loan without lender approval
Explanation
The Garn-St. Germain Act preempts due-on-sale clauses in certain situations including inheritances, transfers to spouses/children, and transfers into living trusts, protecting family transfers.
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