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FinancingMortgage_clausesMEDIUM

A due-on-sale clause allows the lender to:

Correct Answer

B) Demand full repayment if the property is sold or transferred

A due-on-sale (alienation) clause gives the lender the right to call the entire loan balance due if the property is sold or transferred without consent.

Answer Options
A
Increase the rate annually
B
Demand full repayment if the property is sold or transferred
C
Foreclose without court approval
D
Refuse to release the lien

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Related Topics & Key Terms

Related Topics:

alienation-clauseassumptionGarn-St-Germain

Key Terms:

due-on-salealienationfull balancetransfer
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