Finance
A 'due-on-sale' clause in a West Virginia mortgage or deed of trust means:
AThe seller must repay the loan at the time the property is sold
BThe buyer must take out a new loan rather than assuming the existing loan
CBoth (A) and (B) — the loan must be paid off upon transfer of ownership✓ Correct
DThe lender may assume ownership of the property upon sale
Explanation
A due-on-sale (acceleration) clause requires the loan to be paid off in full when the property is sold or transferred. This prevents buyers from assuming existing loans without lender approval and keeps lenders protected against unfavorable transfers.
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