Finance
What is a 'due-on-sale clause' in a Rhode Island mortgage?
AA clause requiring the buyer to pay the seller's outstanding taxes
BA clause giving the lender the right to demand full repayment of the loan if the property is sold or transferred✓ Correct
CA clause setting the closing date
DA clause requiring mortgage insurance upon sale
Explanation
A due-on-sale (or alienation) clause requires the entire loan balance to be paid off when the property is sold or transferred. It prevents automatic loan assumption without lender approval.
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