Finance
In South Carolina, what is the 'due-on-sale' clause in a mortgage?
AA clause requiring the buyer to pay a transfer fee at sale
BA clause giving the lender the right to demand full loan repayment when the property is sold or transferred✓ Correct
CA clause limiting the seller's profit at sale
DA clause requiring property inspection before sale
Explanation
A due-on-sale (acceleration) clause allows the lender to demand full repayment of the outstanding loan balance when the property is sold or transferred. This prevents buyers from assuming old low-rate mortgages without lender approval.
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