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When it comes to real estate transactions, there are various ways that buyers and sellers can structure their agreements. One common method is through a deed of sale with assumption of mortgage or assignment of rights/contract.

So what exactly does this mean? Let`s break it down.

A deed of sale is a legal document that formally transfers ownership of a property from the seller to the buyer. It outlines the terms and conditions of the sale, including the purchase price, payment terms, and any contingencies or warranties.

Assumption of mortgage, on the other hand, refers to the buyer taking over the seller`s existing mortgage loan. This means that the buyer will not need to apply for a new loan, but will simply assume the terms and payments of the seller`s existing mortgage.

Lastly, assignment of rights/contract refers to the process of transferring ownership of a property contract from one party to another. In this case, the seller is assigning their right to sell the property to the buyer.

So why would a buyer or seller choose this type of agreement? One benefit is that it can be a simpler and quicker process than obtaining a new mortgage loan. The buyer also has the advantage of assuming a potentially lower interest rate on the existing mortgage.

However, it`s important for all parties involved to thoroughly review the terms of the existing mortgage and ensure they are comfortable with the payment schedule and interest rate. The buyer will also need to qualify for the assumption of the mortgage, which may involve a credit check and income verification.

In addition, the seller will need to obtain approval from their mortgage lender to transfer the loan to the buyer. This can add some complexity to the process, but with the help of a real estate attorney, it can be navigated smoothly.

In conclusion, a deed of sale with assumption of mortgage or assignment of rights/contract can be a beneficial option for buyers and sellers looking for a streamlined real estate transaction. As with any legal agreement, it`s important to carefully review the terms and seek professional guidance to ensure a successful outcome.