Contracts
In Michigan, a 'subject to' purchase (buying real estate 'subject to the existing mortgage') means:
AThe buyer pays cash without any financing
BThe buyer takes title to the property while the seller's existing mortgage remains in place, with the buyer making payments but the seller remaining personally liable on the note✓ Correct
CThe sale is subject to a new mortgage being obtained by the buyer
DThe buyer assumes personal liability for the seller's mortgage
Explanation
In a 'subject to' purchase in Michigan, the buyer takes title while the existing mortgage stays on the property. The buyer makes payments on the loan but the original borrower (seller) remains personally liable on the promissory note.
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