Contracts
What is the difference between a 'subject to' sale and a loan assumption in Nevada?
AThey are legally identical
BIn a 'subject to' transaction, the buyer takes title with the existing mortgage remaining on the property but does not personally assume the debt — the seller remains liable; a loan assumption transfers personal liability to the buyer✓ Correct
CA 'subject to' sale requires lender approval; an assumption does not
DAn assumption keeps the seller liable; a 'subject to' releases the seller
Explanation
In a 'subject to' purchase, the buyer takes title with the existing loan but does not formally assume it — the seller remains personally liable on the note. If the buyer stops paying, the lender can pursue the seller. An assumption transfers personal liability. Due-on-sale clauses may be triggered in both.
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