In title terms, what does "subject to" mean?

In title terms, "subject to" means that a property is being transferred with specific conditions or encumbrances that the buyer must acknowledge and accept. This phrase is commonly used in real estate transactions to indicate that the buyer is taking on the property with an understanding that there are existing liens, mortgages, or other issues that will continue to affect the property after the transaction.

For instance, if a property is sold "subject to" an existing mortgage, the buyer agrees to take over the property with the mortgage still in place, even if they are not personally responsible for the mortgage itself. This understanding is crucial because it directly impacts the buyer's rights and responsibilities related to the property.

The other options do not accurately capture the meaning of "subject to." For example, stating that a property is sold without conditions does not reflect any existing encumbrances, while references to title insurance eligibility or full ownership rights do not align with the implications of accepting the property under specific conditions. This highlights the nuance involved in understanding real estate transactions and the importance of considering existing obligations when acquiring property.