Finance
A due on sale clause in a mortgage or trust deed:
ARequires the borrower to pay points when the loan is originated
BAllows the lender to demand full repayment when the property is sold or transferred✓ Correct
CPermits the borrower to assume the loan without lender approval
DSets a fixed rate for the first 5 years of the loan
Explanation
A due on sale (alienation) clause gives the lender the right to demand full repayment of the loan when the borrower sells or transfers the property. This clause prevents loan assumptions without lender approval.
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