New Jersey Real Estate License Exam Practice Question
An acceleration clause in a mortgage allows the:
Correct Answer: D
Rationale: An acceleration clause in a mortgage is designed to protect the lender's interests. If the borrower defaults on the loan, this clause allows the lender to demand the full remaining balance immediately, ensuring they can recover their investment quickly.
Option A is incorrect because it refers to prepayment privileges, not acceleration. Option B misrepresents the clause by suggesting it allows additional payments without penalties, which is unrelated to acceleration. Option C inaccurately describes a scenario that is not covered by an acceleration clause, as it focuses on property management rather than debt recovery.
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