If a buyer accepts the responsibility to pay an existing loan on the property purchased, it is called:

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A loan assumption occurs when a buyer agrees to take responsibility for an existing loan on a property instead of getting a new loan. The seller is released from the loan obligation, and the buyer is responsible for making the payments. A release of liability is a document that absolves a party (e.g., a seller) from any responsibility or liability related to a particular matter (e.g., a loan). Exercise of the due-on-sale clause refers to a lender's right to accelerate a loan and demand full payment if the property is sold or transferred without paying off the loan. A liability exchange is not a common term used in real estate transactions, and it does not accurately describe this situation.

If a Buyer Accepts the Responsibility to Pay an Existing