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Due on Sale:
"Due on Sale" is a rule that says when a property owner sells their house, they have to pay back their mortgage right away. It's like when you're done borrowing something, and you have to give it back before someone else can use it.
Imagine Sarah has a mortgage on her house, and the mortgage has a "due on sale" clause. When Sarah decides to sell her house to John, she must pay back the mortgage in full as part of the selling process. This means that the mortgage won't be transferred to John, and he'll need to get his own mortgage to buy the house.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land where houses stand,
A rule exists you should understand.
"Due on Sale" is its name,
When you sell, the mortgage you must reclaim.
As you give your house away,
Pay back the loan, without delay.
So, before the buyer takes the key,
Know this rule, as plain as can be.