Finance
In Virginia, the 'due-on-sale' clause in a deed of trust means:
AThe property must be sold within one year of default
BThe entire loan balance becomes due and payable when the property is sold or transferred✓ Correct
CPayments increase automatically when the property is sold
DThe seller is responsible for paying down the mortgage before transferring title
Explanation
A due-on-sale (alienation) clause allows the lender to demand full repayment of the loan when the property is sold or transferred. This prevents unapproved loan assumptions without lender consent.
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