Which statement correctly states the effect of a transferee taking land ‘subject to’ a mortgage with a due-on-sale clause?

Which statement correctly states the effect of a transferee taking land ‘subject to’ a mortgage with a due-on-sale clause?

• A. The transferee becomes personally liable for the debt
• B. The transferee is not personally liable for the debt; the transferor remains liable for any deficiency
• C. The debt is extinguished by the transfer
• D. The mortgage is automatically accelerated for the transferee

Answer: (B)