Contracts
A 'subject to' transaction in Tennessee means the buyer:
ATakes title subject to (without assuming) the existing mortgage✓ Correct
BAssumes personal liability for the existing mortgage
CPays off the existing mortgage at closing
DCreates a new mortgage with the existing lender
Explanation
Buying 'subject to' means the buyer takes title to the property but does not assume personal liability for the existing mortgage. The seller's mortgage remains in place, and if the buyer stops paying, the lender can foreclose but cannot personally sue the buyer for the debt.
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