Contracts
What is an acceleration clause in a Nevada mortgage or deed of trust?
AA clause allowing the lender to speed up the approval process
BA clause making the entire loan balance due and payable immediately upon default or upon sale of the property✓ Correct
CA clause reducing the interest rate over time
DA clause requiring prepayment of principal each year
Explanation
An acceleration clause allows the lender to demand immediate repayment of the entire outstanding loan balance upon default or other specified events (such as sale or transfer of the property under a due-on-sale clause). This triggers the foreclosure process if not paid.
Related Nevada Contracts Questions
- What is an automatic extension clause in a Nevada purchase contract?
- What is 'impossibility of performance' as a defense to contract breach in Nevada?
- What is an 'as-is' clause in a Nevada purchase agreement and does it eliminate all seller disclosure requirements?
- In Nevada, what is the legal significance of 'time is of the essence' language in a purchase agreement?
- What is the difference between a 'void' and 'voidable' contract in Nevada real estate?
- In Nevada, what is the 'anti-kickback' statute and how does it relate to real estate contracts?
- What is a 'counter proposal' (counteroffer) and what happens to the original offer?
- What is an 'addendum' versus an 'amendment' in a Nevada purchase agreement?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →