Finance
A Florida buyer assumes the seller's existing mortgage. The buyer becomes personally liable for the loan under a(n):
A'Subject to' purchase
BAssumption with novation✓ Correct
CAssumption without novation
DLand contract
Explanation
When a buyer assumes a mortgage with novation, the lender releases the original borrower and substitutes the new buyer as the obligor. With novation, the buyer is personally liable and the seller is released from liability.
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