What is subject to in real estate?
Buying a property “subject-to” means a buyer essentially takes over the seller’s remaining mortgage balance without making it official with the lender. It’s a popular strategy among real estate investors. When interest rates rise, it may also be an attractive financing option for general homebuyers.
How do you structure a subject to real estate?
- Identify a possible subject-to property.
- Talk to the potential seller.
- Analyze the deal.
- Finalize the deal with the seller.
- Transfer ownership of the deed at either the county courthouse or a title company (depending upon local laws).
- Take possession of the property.
What does subject to contingency mean in real estate?
“Contingent” in any sense means “depending on certain circumstances.” In real estate, when a house is listed as contingent, it means that an offer has been made and accepted, but before the deal is complete, some additional criteria must be met.