What is an acceleration clause? Kiritsis Law Group 212 922 0005

May 13, 2021

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

This is a provision that typically favors a mortgage holder (lender). It empowers the lender (often a bank) that upon a specified event such as a property sale or delinquency of the repayment, to have the legal right to ndeclare all sums immediately due and payable. It may be possible that enforcement of an acceleration clause to be impaired by the statute of limitation. Although, acceleration clauses can be found in all sorts of contracts, their most common use is found in real estate documents. It’s often said by attorneys who have spent significant time practicing real property law is a child of contract and bankruptcy law. It’s easy to see how contract law influences real property law, but how does the bankruptcy law fit into real property law? To make the connection, we need to realize that the hardest of a real estate transaction is usually obtaining financing from a lender. The lender has the advantage during most real estate transactions 2 aspects: 1) Naturally, the person with the gold makes the rules ( here, buyer needs lender) and   2) The lender is far more experienced with real estate transactions; even with a competent and skilled real estate attorney; on the buyer’s side the lender will probably hold most cards at the closing table. What is the lender’s biggest concern? It’s often a buyer’s filing of bankruptcy, and hence the insertion of acceleration clauses in many real estate loan documents.

 

Law Offices of Kiritsis & Associates

Phone # 212 922 0005

Manhattan Office (Main Office):

633 Third Avenue

New York, NY 10017

Suite 1306

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

We hope you would find this website useful with regards to finding potentially relevant information for your legal issue.   The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey.  We strive to provide professional legal services for individuals and various business entities.  Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.

We offer flat fee prices for many of the practice areas provided listed throughout our website.  For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.

 

We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.

Phone# 212-922-0005

 

Intellectual Property Disclaimer(s):

Copyright 2021

The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws.  You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis.  Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced.  All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.