Texas Real Estate Exam

Category - Real Estate

During Broker Shaw’s preparation of the Exclusive Authorization and right to Sell on Seller Norman’s property, Norman asked that a clause be included which would require the buyer to accept primary liability in connection with the existing loan is transferred to the buyer. Shaw should enter with of the following in Paragraph 2 of the Exclusive Authorization and Right to Sell from:
  1. Buyer to take the property “subject to” the loan
  2. Buyer to “assume” existing loan
  3. Buyer to pay all cash
  4. Buyer to make a large down payment to preclude possibility of a foreclosure
Explanation
Answer: B. If a buyer assumes an existing loan, he accepts primary liability for that loan.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz