Pennsylvania Real Estate Salesperson Exam — All Questions

A clause in a mortgage that lets the lender demand the entire remaining balance immediately if the borrower defaults is the:

• a.Defeasance clause
• b.Acceleration clause✓
• c.Subordination clause
• d.Prepayment clause

An acceleration clause allows the lender to call the full unpaid balance due upon default, which is a necessary step before foreclosure. A defeasance clause, by contrast, requires the lender to release the lien once the loan is paid in full. The two clauses serve opposite functions.