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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

Prevents unauthorized loan assumption by calling the balance due upon sale/transfer.

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

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Related Topics & Key Terms

Related Topics:

alienation

Key Terms:

due-on-sale
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