The Due-On-Sale Clause Prevents Assumption of a Mortgage

question 25

True/False

The due-on-sale clause prevents assumption of a mortgage.

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Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price-taking behavior.

Market Price

The existing rate at which an asset or service may be acquired or disposed of on the market.

Utility Consumption

The enjoyment or satisfaction gained by using a good or service.

Factor Markets

Markets where resources, such as labor, capital, and land, are bought and sold.