Contracts

In Hawaii, what is a 'release of liability' clause in an assumption agreement?

AA. The buyer's release of the seller from any future property defect claims
BB. The lender's agreement to release the original borrower from personal liability when the buyer assumes the loan✓ Correct
CC. A release of the real estate agent from commission obligations
DD. A release of mechanic's liens from the property

Explanation

When a lender approves a loan assumption, they may release the original borrower from personal liability, transferring full responsibility to the assuming buyer.

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