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The seller told the listing broker that the seller's loan was assumable. Upon reviewing the seller's loan documents the listing broker found the mortgage was not assumable and the seller would have to
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The seller told the listing broker that the seller's loan was assumable. Upon reviewing the seller's loan documents the listing broker found the mortgage was not assumable and the seller would have to pay off the mortgage upon sale. What clause did the listing broker discover upon reading the mortgage document

User Grant Smith
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6 votes

Answer:

Due on sale clause

Step-by-step explanation:

A due on sale clause is the clause in which there is a promissory note or a loan that specified that the full balance could be called up at the time of sale or ownership transfer in order to protect the note

Therefore in the given situation, since it is mentioned that the seller has to pay the amount at the time of sale

So this represents the due on sale clause

User Vincent Dagpin
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