Property Ownership
In Montana, a buyer who purchases property subject to an existing mortgage is:
APersonally liable on the mortgage note
BNot personally liable on the note, but the property remains security for the debt✓ Correct
CRequired to assume the mortgage and become personally liable
DAutomatically released from any risk if the seller defaults
Explanation
Purchasing 'subject to' an existing mortgage in Montana means the buyer takes title with the existing mortgage lien intact but does not assume personal liability on the note. If the original borrower (seller) defaults, the lender can foreclose—affecting the buyer's property—but cannot pursue the buyer personally for any deficiency.
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