What is unique about a "subject to" purchase arrangement?

In a "subject to" purchase arrangement, the buyer acquires the property without formally assuming the existing mortgage. This means that the seller's mortgage remains in place, and the buyer takes control of the property while the loan stays in the seller's name.

This arrangement is advantageous for buyers who may not qualify for new financing or want to bypass traditional lending requirements. It allows them to take possession of the property and potentially make payments on the mortgage without having their name on the loan. The original borrower—usually the seller—retains responsibility for the mortgage, but the buyer can benefit from the property’s use and any potential equity accumulation.

The other options do not correctly describe the characteristics of a "subject to" arrangement; for instance, the buyer does not take on personal responsibility for the existing mortgage debt, nor are they obligated to pay the full amount of the mortgage at closing. Additionally, the seller may transfer the property while still having the mortgage under their name, thus maintaining ownership during the process is not a necessary requirement.