What is the primary benefit for a buyer in a "subject to" transaction?

a) Assume personal liability for the loan

b) Obtain the property without qualifying for a new loan

c) Transfer the mortgage to a different lender

d) Pay off the seller's outstanding mortgage balance

What type of entity is typically created by the buyer in a "subject to" transaction to hold the property?

a) REIT (Real Estate Investment Trust)

b) LLC (Limited Liability Company)

c) LLP (Limited Liability Partnership)

d) S-Corporation

Who is responsible for conducting due diligence on the property in a "subject to" transaction?

a) The buyer

b) The seller

c) The lender

d) The government

What is the purpose of conducting inspections and title searches during due diligence in a "subject to" transaction?

a) To determine the property's fair market value

b) To identify hidden issues or problems with the property

c) To negotiate a lower purchase price with the seller

d) To assess the buyer's ability to qualify for a new loan

What happens to the seller's mortgage in a "subject to" transaction?

a) It is paid off by the buyer at closing

b) It remains in the seller's name

c) It is transferred to the buyer's name

d) It is discharged by the lender

Who assumes responsibility for making the mortgage payments in a "subject to" transaction?

a) The seller

b) The buyer

c) The lender

d) The government

In addition to mortgage payments, what other ongoing obligations does the buyer take on in a "subject to" transaction?

a) Property taxes, insurance, and maintenance

b) Homeowner association fees

c) Capital improvements and renovations

d) Tenant screening and management

e) All of the above

When does the seller's mortgage in a "subject to" transaction get refinanced or paid off?

a) Immediately after the closing

b) Within 30 days of the closing

c) Within 1 year of the closing

d) It remains in place until the property is sold

What legal documents are typically involved in a "subject to" transaction?

a) Purchase and Sale Agreement

b) Subject to Disclosure

c) Deed transfers

d) All of the above

Where does the closing typically take place in a "subject to" transaction?

a) Seller's attorney's office

b) Buyer's attorney's office

c) Title company's office

d) Real estate agent's office

True or False: The "subject to" strategy is suitable for homeowners who want to walk away from their mortgage payments immediately.

a) True

b) False