A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise?

When a buyer pays 20% down for a property and subsequently does not make any further payments on the mortgage, the lender would exercise an acceleration clause. This clause allows the lender to require the full remaining balance of the loan to be paid immediately under certain conditions, which commonly include the borrower's default on the loan terms, such as failing to make payments.

The purpose of the acceleration clause is to protect the lender's interests by enabling them to take swift action to recover their investment in the event of a default. In this specific scenario, the default occurs when the buyer stops making payments, triggering the clause that accelerates the loan's repayment terms.

Understanding this clause is crucial for both lenders and borrowers, as it outlines the actions that can be taken in the event of a default and emphasizes the importance of adhering to the mortgage payment schedule. Other clauses, like alienation (which deals with transfer of ownership), habendum (related to property rights), or novation (which involves replacing a party or obligation in a contract), do not directly relate to the issue of missed payments and do not provide the lender with the same immediate remedy as the acceleration clause does.