Escrow & Title
In South Dakota, when a buyer purchases a property subject to an existing mortgage, the buyer:
AAssumes all personal liability for the mortgage
BTakes the property with the mortgage still in place but does not assume personal liability for the debt✓ Correct
CMust pay off the mortgage immediately upon purchase
DHas no obligation to make mortgage payments
Explanation
When buying 'subject to' an existing mortgage (as opposed to assuming it), the buyer takes title with the mortgage in place but does not become personally liable for the debt. The original borrower remains personally liable. The buyer's risk is that if payments are not made, the lender can foreclose on the property.
Related South Dakota Escrow & Title Questions
- In South Dakota, 'prorations' at closing ensure that:
- Which of the following would be found in the public record and shown on a title search in South Dakota?
- In South Dakota, the register of deeds charges a recording fee based on:
- A South Dakota seller paid for a survey 5 years ago. A buyer's lender requires a new survey. Who typically pays for the new survey?
- A South Dakota title company issues a commitment for title insurance before closing. This commitment:
- In South Dakota, a closing statement shows the seller's net proceeds. To calculate net proceeds, which of the following is ADDED to the seller's side?
- In South Dakota, the 'chain of title' refers to:
- In South Dakota, 'actual notice' differs from 'constructive notice' in that actual notice requires:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →