CalculateRealEstateROI

Financing

What does 'subject to' mean in real estate?

Taking over a property subject to the existing mortgage staying in seller's name.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Taking over a property subject to the existing mortgage staying in seller's name.

Expanded explanation

Useful in distressed seller situations to preserve favorable existing financing. Carries due-on-sale risk.

Examples

  • Took over $200k seller mortgage at 3.25% rate from 2021.

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