Question

A seller sold a house to a buyer allowing the buyer to take over the loan on a "subject to" basis. After 2 years, the buyer defaulted on the loan. Who would be liable to the lender for the note?

Answer 1

The Seller would be primarily liable

Step-by-step explanation:

Since in the question, it is mentioned that the seller had sold a house to a buyer for taking up the loan i.e. based on a subject. But after two years the buyer does the default and does not pay the money.

Therefore for lending the note, the seller is primarily liable as the seller permit the buyer for taking the loan