The transfer of rights to pay a debt from one party to another, with the original party remaining liable for the debt if the second party defaults.
The taking of real property "subject to" an existing loan is done without new borrower being personally liable to the existing lender if a deficiency results upon foreclosure. This is in contrast to assuming a loan, when the buyer assumes responsibility and liability for the loan.
The term used to denote the existing mortgage is not being assumed by the buyer. The property can be transferred without assuming the existing mortgage. The mortgage stays with the property, but remains in the sellers name until it is paid off. (Example: Upon performance by Buyer, Seller shall deliver a Warranty Deed joined in by spouse, if any, conveying marketable title, subject to the existing mortgage in favor of XYZ Bank.)
Taking title to property with a lien but not agreeing to be personally responsible for the lien. If the holder who forecloses the lien can take the property but may not collect any money from the owner who took "subject to." Compare, ASSUMPTION.
The purchase of a property with an existing lien against the title without assuming any personal liability for the liens payment.
Usually referred to as the condition of title that exists at the time of acquisition by the buyer, such as subject to a Deed of Trust or record.
An indication that title to a property includes an obligation of some sort, an easement, right of way, lien, right of claim. Opposite of "together with".
When transferring title to a property encumbered by a mortgage lien without paying off the debt or assuming the note, the buyer is taking title "subject to the existing financing."
The recognition by a buyer of conditions (such as a prior loan), which are not the buyer's legal responsibility.
The recognition by a buyer that a prior loan exists and not the legal obligation to fulfill its requirements.
The buyer agrees to make payments on the existing mortgage, without notifying the lender. The seller remains liable for making payments on the loan if the buyer does not make the mortgage payment. The buyer is not personally liable for mortgage payments, but must make payments to keep the property. See also Assumable Mortgage.
The transfer of rights to pay an obligation from one party to another, with the first party remaining secondarily liable should the second party default. In addition, the first obligor could be responsible for any deficiency judgment caused by the second borrower. (See assignment, assumption and novation.)
Method of taking over a loan secured by a trust deed without taking over the responsibility of a deficiency judgment if a foreclosure sale later occurs.
Taking ownership of a property with a lien (legal claim or charge) against it, but not assuming responsibility for the said lien, while the holder who forecloses the lien can take the property, but may not collect money from the owner who took "subject to
When a grantee takes title to real property subject to an existing loan, the grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due, i.e., the seller remains liable for a deficiency; the buyer only losses his equity in the property.
