Contracts
A Texas seller agrees to sell their property 'subject to' an existing mortgage. This means:
AThe seller pays off the mortgage at closing
BThe buyer takes title while the seller's mortgage remains in place; the buyer makes payments but is not personally liable on the note✓ Correct
CThe buyer assumes personal liability for the existing mortgage
DThe lender approves the transfer of the loan
Explanation
Purchasing 'subject to' an existing mortgage means the buyer takes title while the existing loan remains in the seller's name. The buyer makes payments but has no personal obligation on the promissory note — the seller remains personally liable. This differs from an assumption where the buyer takes on personal liability.
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