What is the name of the clause that requires full loan payment upon property sale?

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The correct choice, which is the alienation clause, pertains to a provision in a mortgage or trust deed that allows the lender to demand full payment of the loan if the property is sold or transferred to another party. This clause is designed to protect the lender by ensuring that they have control over who holds the mortgage and under what circumstances. When a property is sold, this clause activates and requires the borrower to pay off the remaining loan balance, effectively preventing any new owners from assuming the mortgage under the original terms without the lender's consent.

The terminology used in the other options illustrates different contractual elements relevant to loans or mortgages. The due-on-sale clause is often used interchangeably with the alienation clause; however, the latter term focuses specifically on the requirement for total payment upon the transfer of ownership. The acceleration clause generally permits the lender to require immediate payment of the entire loan if the borrower defaults on certain terms of the loan, but it does not specifically address property sale. The mortgage clause is a broader term referring to various conditions and stipulations embedded within a mortgage agreement. Thus, the alienation clause is the most precise answer concerning the requirement for full loan payment upon a sale of the property.

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