Finance
A 'due on sale' clause in a mortgage requires:
AThe buyer to assume the seller's existing mortgage
BThe full loan balance to become due when the property is sold or transferred✓ Correct
CThe seller to pay off the mortgage 30 days before closing
DThe buyer to obtain a new mortgage at the same interest rate
Explanation
A due-on-sale (acceleration) clause requires the full mortgage balance to become immediately due and payable when the property is transferred. It prevents buyers from assuming existing mortgages without lender consent and allows lenders to adjust rates on transfer.
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