Escrow & Title
A Pennsylvania property being sold 'subject to' an existing mortgage means:
AThe buyer assumes personal liability for the mortgage
BThe buyer takes title but the seller remains personally liable on the mortgage✓ Correct
CThe mortgage is paid off at closing from sale proceeds
DThe lender must approve the transfer
Explanation
When a buyer purchases 'subject to' an existing mortgage, they take title with the mortgage still in place but do NOT personally assume the debt. If payments are not made and foreclosure occurs, the seller remains personally liable on the underlying mortgage note. This differs from an assumption where the buyer takes on personal liability.
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