Ace the Texas Real Estate State Exam 2026 – Unlock Your Realty Dreams!

When a loan is assumed in Texas real estate, the correct obligation imposed on the new buyer is to pay off the loan. Assumption of a loan means that the buyer takes over the seller's existing mortgage, agreeing to make the payments as outlined in the original mortgage agreement. This transfer of responsibility typically allows the buyer to benefit from the seller's existing loan terms, which may include a lower interest rate compared to what is currently available on the market.

In this scenario, the buyer is essentially agreeing to step into the seller's shoes concerning the mortgage, thereby obligating themselves to make payments directly to the lender according to the terms of that mortgage. This situation can often be appealing for buyers in a rising interest rate environment, as it may provide access to more favorable financing terms.

Paying off the seller's debts is not applicable to just the loan itself but may be included in a broader context of all debts, which goes beyond the scope of simply assuming the mortgage. Obtaining a new appraisal and assuming the seller’s credit score do not relate to the direct obligations associated with assuming a loan; instead, those involve other processes that may or may not be relevant in the actual loan assumption scenario.