What provision in a mortgage requires repayment in full if the property is sold?

The provision in a mortgage that requires repayment in full upon the sale of the property is known as the Due-On-Sale Provision. This provision enables the lender to demand the entire outstanding balance of the loan if the borrower sells or transfers the property without the lender's consent. The purpose of this clause is to protect the lender's interest by ensuring that the borrower does not transfer the mortgage obligation to a new owner without the lender being aware and possibly reassessing the risk involved.

In contrast, other options address different aspects of mortgage agreements. The Acceleration Clause allows a lender to call the entire loan balance due and payable if the borrower defaults on payments, but it is not specifically tied to the sale of the property. The Exclusivity Clause, while not a standard term in mortgages, could refer to agreement stipulations but does not apply to the repayment upon property sale. Lastly, the Prepayment Penalty refers to a fee charged by the lender if the borrower pays off the loan early, which does not necessarily require full repayment upon a sale unless stipulated in conjunction with the due-on-sale provision.