Finance
A due-on-sale clause in a Vermont mortgage means:
AThe seller must pay off all liens at closing
BThe entire loan balance becomes due when the property is sold or transferred✓ Correct
CThe buyer must pay two months' principal at closing
DThe lender may require additional collateral upon sale
Explanation
A due-on-sale (acceleration) clause requires the borrower to pay off the mortgage in full when the property is sold or transferred. This prevents buyers from assuming old low-rate mortgages without lender approval.
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