What does "subject to" in a mortgage title indicate?

The phrase "subject to" in a mortgage title indicates that the buyer is responsible for the payments on the existing loan, but it does not imply that the buyer assumes full liability for the mortgage itself. In this arrangement, the buyer essentially takes over the responsibility for making the mortgage payments, even though the original borrower (typically the seller) remains legally liable for the loan unless it has been explicitly assumed. This distinction is crucial because if the buyer fails to make payments, the lender can still pursue the original borrower, which could lead to complications for both parties.

The other options do not accurately represent what "subject to" entails. The buyer does not assume the entire loan in the sense of becoming fully responsible for all aspects of it; the seller does not agree to pay off the mortgage as part of this arrangement; and there is no indication that the loan will be refinanced merely because it is being taken over in this manner.