Finance
In Virginia, a due-on-sale clause in a deed of trust means:
AThe seller must pay off the loan before selling
BThe lender can demand full repayment of the loan when the property is transferred✓ Correct
CThe buyer assumes the loan automatically
DInterest rates adjust when the property is sold
Explanation
A due-on-sale (alienation) clause allows the lender to call the entire loan balance due when the property is sold or transferred. This prevents buyers from assuming existing loans without lender approval.
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