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FinancingMortgage ClausesMEDIUM

A due-on-sale clause in a West Virginia mortgage:

Correct Answer

B) Allows the lender to demand full repayment if the property is transferred

A due-on-sale (alienation) clause gives the lender the right to call the entire loan balance due and payable if the property is sold or transferred without the lender's consent. This prevents unauthorized loan assumptions.

Answer Options
A
Requires the borrower to sell within a specified time
B
Allows the lender to demand full repayment if the property is transferred
C
Prevents the borrower from selling the property
D
Sets the maximum sale price

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Related Topics & Key Terms

Related Topics:

alienation-clauseassumptionGarn-St-Germain

Key Terms:

due-on-salealienationfull balancetransfer triggerexceptions
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