Escrow & Title
A North Dakota buyer purchases property 'subject to' an existing mortgage. This means:
AThe buyer assumes full personal liability for the mortgage
BThe buyer takes title but does not assume personal liability; the original borrower remains liable if the buyer defaults✓ Correct
CThe mortgage is automatically paid off at closing
DThe lender must approve the buyer before the sale
Explanation
Buying 'subject to' an existing mortgage means the buyer takes title subject to the mortgage lien without personally assuming the debt. If the buyer defaults, the lender can foreclose, but the original borrower remains personally liable.
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