New Jersey Real Estate Exam Practice Question
Which of the following is true about mortgage assumptions?
Correct Answer: B
Rationale: In mortgage assumptions, the seller may or may not be released from liability depending on the lender's approval. If the lender agrees, the seller can be relieved of the original mortgage obligation; if not, they remain liable. Option A is incorrect because the buyer typically assumes the liability of the mortgage. Option C is misleading, as the buyer usually does not need to sign a new mortgage note in an assumption; they take over the existing note. Option D is also incorrect, as receiving a warranty deed does not automatically release the seller from liability; lender consent is required.
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