Finance & Mortgages

Acceleration Clause

A mortgage provision that lets the lender demand the entire unpaid balance at once when the borrower defaults or another triggering event occurs.

Quick flashcard

What does Acceleration Clause mean on the Texas real estate exam?

Answer: A mortgage provision that lets the lender demand the entire unpaid balance at once when the borrower defaults or another triggering event occurs.

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Acceleration Clause definition

An acceleration clause gives the lender the right to call the full remaining balance due immediately upon a triggering event, most commonly the borrower's default. Without it, the lender could only pursue missed payments one at a time.

Acceleration is the step that usually precedes foreclosure. The due-on-sale clause is a specific acceleration trigger tied to transfer of the property.

Source basis

Definition checked against the official sources below on .

On the exam

Acceleration is the general power to demand the whole balance. Foreclosure is the process that follows if the borrower cannot pay.

Exam trap

An acceleration clause is broader than a due-on-sale clause. Default triggers acceleration; sale triggers the due-on-sale version.

Tested in

Financing & Settlement (7 of 80 National)

From definition to recall

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.