If the buyer assumes responsibility for the mortgage, which statement is true?

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Multiple Choice

If the buyer assumes responsibility for the mortgage, which statement is true?

Explanation:
When a buyer assumes an existing mortgage, the buyer becomes the primary obligor to the lender for the loan. The seller typically remains liable as a secondary obligor unless the lender releases them from the obligation. The lender’s consent is usually needed to release the seller from liability. So the true statement is that the buyer is personally liable, and the seller remains secondarily liable. The other possibilities misstate the relationship: the seller would not remain solely liable, the mortgage isn’t automatically released from the land, and the buyer is indeed liable if they assume the loan.

When a buyer assumes an existing mortgage, the buyer becomes the primary obligor to the lender for the loan. The seller typically remains liable as a secondary obligor unless the lender releases them from the obligation. The lender’s consent is usually needed to release the seller from liability. So the true statement is that the buyer is personally liable, and the seller remains secondarily liable. The other possibilities misstate the relationship: the seller would not remain solely liable, the mortgage isn’t automatically released from the land, and the buyer is indeed liable if they assume the loan.

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