A "Due on Sale" Clause

question 14

Multiple Choice

A "due on sale" clause

• A) may be called a subordination clause.
• B) gives the lender the right to call the entire loan balance upon alienation.
• C) is the right of a mortgagor to repay a loan.
• D) gives the mortgagor the right to sell his property with a loan assumption by the buyer.

---

Definitions:

Without Unreasonable Delay

Acting or responding in a timely manner without excessive postponement.

Good Faith

The honest intent to act without taking an unfair advantage over another party, typically referenced in contracts or negotiations.

Obtaining Cover

The process of seeking alternative goods or services, typically by a buyer in response to a seller's breach of contract.

Resale Price

The amount for which an item is sold again on the market after it has been purchased once from the original seller or manufacturer.