Which provision states that the mortgagor is granting a mortgage on the property?

• A. Granting clause
• B. Due on sale clause
• C. Insurance provisions
• D. Acceleration clause

Answer: (A)

The key idea is that a mortgage instrument must include a clause that actually conveys the property interest from borrower to lender as security for the loan. That is the granting clause. It states that the mortgagor grants, bargains, and conveys to the mortgagee all rights, title, and interest in the described property to secure the debt. This is what creates the lien and shows the borrower's action of granting the mortgage on the property.

The other provisions serve different functions: a due on sale clause triggers repayment if the property is transferred; insurance provisions require maintaining insurance; an acceleration clause allows the lender to demand full repayment if there’s a default. None of these establish the grant of the mortgage itself—the granting clause does.