Contracts
In Tennessee, a 'due-on-sale' clause in a mortgage means:
AThe full purchase price is due at the time of sale
BThe entire loan balance becomes due if the property is sold or transferred without the lender's approval✓ Correct
CThe property must be sold within a specified time
DThe seller must pay the mortgage balance before listing
Explanation
A due-on-sale (alienation) clause requires the full mortgage balance to be paid when the property is sold or transferred, preventing loan assumption without the lender's approval.
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