What does "subject to" mean in real estate transactions?

In real estate transactions, "subject to" refers to a situation where a buyer acquires property while the existing financing remains in place, but the buyer does not assume personal liability for the loan. This means that the seller retains responsibility for the mortgage obligations, and the loan remains in the seller's name. The buyer can take over the property and make payments, but they are not legally bound to pay the underlying mortgage if the seller defaults. This arrangement allows buyers to potentially benefit from favorable financing terms already established by the seller without taking on additional risk associated with the loan itself.

In contrast, the other choices involve different scenarios that do not capture the essence of "subject to." For instance, purchasing without financing implies the buyer is paying cash, which is not representative of the "subject to" arrangement. Assuming total liability for an existing loan indicates a different type of agreement where the buyer officially steps in for the seller, leading to personal obligations for the mortgage, which is not the case here. A transaction contingent on other offers refers to negotiations or conditions surrounding multiple potential buyers, leading to misunderstandings of loan obligations. Thus, choice C accurately articulates the concept of "subject to" in real estate transactions.