Kevin Lowe buys a home subject to a recorded security instrument that says the lender may declare the entire balance immediately due if Kevin transfers the property without consent. Which clause is being described?
Correct Answer
C) A due-on-sale clause addressing unauthorized transfer
A due-on-sale clause allows the lender to call the loan due if the property is transferred without the lender's consent. It is aimed at unauthorized transfer, not at ordinary monthly payment default.
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