A buyer of real estate subject to a mortgage who does not undertake any personal liability for payment of the mortgage debt:
A) takes the property "subject to" the mortgage.
B) "assumes" the mortgage.
C) can only obtain a quitclaim deed.
D) can only obtain a leasehold.

Question

Quizplus · Accepted Answer

When a buyer purchases real estate subject to a mortgage, they take the property "subject to" the mortgage, which means they are not assuming any personal liability for the repayment of the mortgage debt. The mortgage remains in the original borrower's name, and the lender can foreclose on the property if the mortgage payments are not made. The buyer is not assuming the mortgage, which would require them to take on personal responsibility for the debt, but rather is simply acquiring the property subject to the existing mortgage.

A Buyer of Real Estate Subject to a Mortgage Who