Legal Question in Real Estate Law in Virginia
Deed ''subject to''
A relative plans to give me property after I let him borrow money to assist him with some pressing obligtions. I was in the process of having a deed prepared when I learned that there are liens, judgements, and a mortgae recorded against the property. Can I still transfer title ''subject to'' the debts and not place myself in a liability to pay off the outstanding debt?
2 Answers from Attorneys
Re: Deed ''subject to''
Only liens, judgments, and a mortgage, you say, recorded against and legally encumbering this property which is supposedly offered as a collateral guarantee of sorts for this loan that you are to make to a relative?
How many more RED FLAGS do you need to suggest to you that the transaction which you've described is very likely one that you should avoid---at all costs. Otherwise, you're very likely to lose this loan and more.
Re: Deed ''subject to''
I agree with what Michael Hendrickson said. But to answer your specific question, taking title will not make you personally liable for these debts, but if you don't pay them, you will lose the property. Also, it is likely that with the mortgage, there is a due-on-sale clause that would allow the lender to accelerate the debt and render it all due immediately, rather than in installments.
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