Which clause indicates that a loan may be called due by the lender?

The due-on-sale clause is a specific provision in a loan agreement that allows the lender to require the borrower to pay the entire outstanding balance of the loan if the property is sold or transferred. This clause protects the lender's interest by enabling them to call the loan due when ownership changes, thereby preventing the buyer from assuming the loan without the lender's consent. This is particularly important because the lender may have set specific terms and conditions based on the original borrower's creditworthiness and financial situation. If a property is sold, the new owner may not meet these standards, posing a risk to the lender.

Other clauses mentioned serve different purposes. An escrow clause pertains to the management of funds and expenses associated with a property, primarily ensuring that necessary payments like taxes and insurance are made. The right of rescission allows borrowers to cancel a loan agreement within a specified period after closing, providing them an opportunity to reconsider their decision. The exclusive listing clause relates to real estate agents and mandates that a property can only be sold by a specific agency during a set period, which does not involve any loan parameters at all. Understanding these distinctions highlights why the due-on-sale clause is critical in the context of loan agreements and property transfers.