Escrow & Title
A buyer in Arizona takes title 'subject to' an existing mortgage. This means:
AThe buyer personally assumes liability for the mortgage debt
BThe buyer takes ownership with the mortgage still on the property but is not personally liable for the debt✓ Correct
CThe mortgage is released at closing
DThe lender must approve the transfer before it is valid
Explanation
Taking title 'subject to' an existing mortgage means the buyer acquires the property with the mortgage in place but does not personally assume liability for the debt. If the buyer defaults, the lender can foreclose but cannot sue the buyer personally.
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