California Real Estate Practice Exam

Image Description

Question: 1 / 740

How can a seller protect himself from future liability when a buyer takes over the seller's mortgage?

By increasing the interest rate

By demanding full payment

By making sure that the buyer assumes the mortgage

It is important for a seller to make sure that the buyer assumes the mortgage in order to legally transfer the responsibility of the loan to the new owner. Choosing "A" by increasing the interest rate would put an unnecessary financial burden on the buyer. Choosing "B" by demanding full payment would be unrealistic and unfeasible for most buyers. Choosing "D" by applying for a new loan would not protect the seller from liability as they would still be responsible for the original mortgage.

Get further explanation with Examzify DeepDiveBeta

By applying for a new loan

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy