A salesperson is representing a buyer interested in a property where the seller has an existing mortgage. The buyer wishes to take over the seller's current mortgage. Which of the following is crucial for the salesperson to advise their buyer client about this option?

Question: A salesperson is representing a buyer interested in a property where the seller has an existing mortgage. The buyer wishes to take over the seller's current mortgage. Which of the following is crucial for the salesperson to advise their buyer client about this option?

Answer options:

• The buyer will automatically qualify to assume the mortgage without any lender approval. ✅ The seller will remain fully liable for the mortgage even after the buyer assumes it, unless the lender discharges them from liability.
• Assuming the mortgage means the interest rate can be renegotiated immediately upon assumption.
• Assumption of a mortgage is typically only possible if the original mortgage was a vendor take-back.

Correct answer: The seller will remain fully liable for the mortgage even after the buyer assumes it, unless the lender discharges them from liability.

Explanation: When a buyer assumes an existing mortgage, the original borrower (seller) usually remains secondarily liable to the lender unless the lender formally releases them from the covenant, which is critical for the seller to understand.