Finance
A North Dakota mortgage that allows the lender to demand full payment if the property is sold without lender approval is called a:
APrepayment clause
BDue-on-sale (alienation) clause✓ Correct
CAcceleration clause
DDefeasance clause
Explanation
A due-on-sale (alienation) clause requires the borrower to pay off the mortgage in full if the property is sold or transferred without lender approval. This prevents buyers from assuming mortgages without lender consent, allowing lenders to require higher-rate financing on transfer.
Related North Dakota Finance Questions
- A North Dakota borrower who takes a 'cash-out refinance' is:
- A North Dakota borrower who is 90 days or more behind on mortgage payments and receives a formal notice from the lender is in:
- A North Dakota seller who takes back a purchase money mortgage is subject to all EXCEPT:
- A North Dakota lender 'collects in escrow' for property taxes and insurance. This means:
- Under North Dakota law, a foreclosure deed (such as a trustee's deed after a non-judicial foreclosure) provides what level of warranty to the buyer?
- A North Dakota lender 'services' a mortgage by:
- A North Dakota buyer's PITI payment includes which of the following components?
- Points paid at closing on a mortgage loan are also called:
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →