A due-on-sale clause allows an entrepreneur buying a business to "assume" the seller's loan (usually at a lower interest rate).

Name: A due-on-sale clause allows an entrepreneur buying a business to "assume" the seller's loan (usually at a lower interest rate).
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A due-on-sale clause requires that the entire loan balance be paid in full upon the transfer of ownership of the property, so it would not allow for assumption of the seller's loan.

A Due-On-Sale Clause Allows an Entrepreneur Buying a Business to "Assume