Must the PACE obligation be paid off at sales closing?

Buyers may negotiate the terms and conditions of the sale of a property.  To be eligible for FHA insurance, the PACE obligation must be paid off at or prior to sale of the property.
For additional information see Mortgagee Letter (ML) 2017-18 at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03525