Texas Real Estate State Practice Exam

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What is the characteristic of a "straight assumption" in a Texas real estate transaction?

New buyer assumes the seller's identity
Immediate debt repayment by the seller
New buyer is responsible and does not impact the seller's credit score
Automatic property transfer to the new buyer

The correct answer is: New buyer is responsible and does not impact the seller's credit score

In a Texas real estate transaction, a "straight assumption" involves a new buyer taking over the existing mortgage loan obligations without the seller being released from the liability of that loan. In this context, the characteristic that stands out is that the new buyer steps into the seller's financial shoes regarding the mortgage, but this does not directly affect the seller's credit score as long as the mortgage payments are made on time by the new buyer. If the new buyer pays the mortgage responsibly, the seller's credit remains unaffected because the seller is still listed on the loan and remains ultimately responsible for the debt. This situation creates a scenario where the buyer's actions are crucial in maintaining the seller's credit status while they live in and make payments on the property. Thus, the fact that the buyer's assumption of the loan relates to responsibility without directly imposing consequences on the seller's credit score is what makes this characteristic essential and accurate in the context of a straight assumption.