If a buyer defaults on a loan taken "subject to," who remains primarily liable to the lender?

When a property is acquired "subject to" an existing loan, the buyer takes ownership of the property, but the original loan remains in the seller's name. This means that while the buyer is responsible for making the loan payments, the underlying liability to the lender stays with the seller. If the buyer subsequently defaults on the loan, it is the seller who remains primarily liable to the lender for repayment of the loan amount. This arrangement allows buyers to acquire properties without assuming formal responsibility for the mortgage itself, but it also places the seller at risk if the buyer fails to uphold their payment obligations.

The other roles, such as the lender, the buyer, and the mortgage broker, do not hold the same primary liability under these circumstances. The lender may still pursue actions against the seller due to their ongoing obligation, while the buyer's default primarily affects their agreement with the seller.