Definition: Taking property subject to a mortgage means acquiring title while the existing lien remains, without assuming personal liability for that debt merely through the transfer.
Example
A buyer takes title subject to an existing mortgage, while the original borrower remains liable under the note.
Keep the distinction clear
The property can still be foreclosed upon. The transfer may also implicate a due-on-sale clause; a buyer-seller arrangement does not itself bind the lender.
Related terms
Assumption (Mortgage) · Due-on-Sale Clause · Mortgage
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: FREC Course I syllabus: assumption and subject-to financing
Pronunciation (US): SUB-jekt too thuh MOR-gij (capitals show stress)
Pronunciation reference: Merriam-Webster
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