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The undertaking of the repayment of a debt or the performance of an obligation owed by another.
When a purchaser of real property assumes the mortgage of the seller, he or she agrees to adopt the mortgage debt, becoming personally liable for its full repayment in case of default. If a foreclosure sale of the mortgaged property does not satisfy the debt, the purchaser remains financially responsible for the outstanding balance.
In contrast, a purchaser who takes subject to the seller's mortgage agrees to repay the mortgage debt, but that person's liability is limited only to the amount that the mortgaged property is sold for in the case of foreclosure. If the property is sold for less than the mortgage debt, the mortgagee must seek the remaining balance due from the seller, the original mortgagor.
n. the act of taking over a debt as part of payment for property which secures that debt. (See: assume)
assumption(Adoption), noun acceptance, receiving, reception, recipience, selection, taking on, undertaking
Associated concepts: assumpsit on quantum meruit, assumption agreement, assumption of debt, assumption of facts, assumption of indebtedness, assumption of jurisdiccion, assumption of liability, assumption of mortgage, assumption of obligation, assumption of risk
assumption(Seizure), noun annexation, arrogation, dispossession, encroachment, exaction, expropriation, impropriation, infringement, usurpation
assumption(Supposition), noun basis, belief, foundation, ground, hypothesis, hypothesization, notion, opinion, personal judgment, postulate, premise, presumption, presupposition, sumptio, supposal, surmise, theory, thinking, view
See also: acceptance, acquisition, adoption, adverse possession, appropriation, arrogation, basis, belief, concept, conclusion, condemnation, conjecture, conviction, deduction, distress, estimate, estimation, generalization, ground, hypothesis, idea, inference, opinion, persuasion, postulate, preconception, presumption, prolepsis, proposition, receipt, speculation, supposition, taking, theory