Legal Definitions - subject to

Definition: Subject to refers to the acquisition of title to real property upon which there is an existing mortgage or deed of trust when the new owner agrees to take title with the responsibility to continue to make the payments on the promissory note secured by the mortgage or deed of trust.

For example, if John buys a house from Jane subject to the existing mortgage, John becomes the new owner of the property but is responsible for making the mortgage payments. If John fails to make the payments, the original debtor (Jane) will still be liable for the payment, but the holder of the mortgage or beneficiary of the deed of trust may foreclose and John could thus lose title.

This differs from the new title holder "assuming" the mortgage or deed of trust by a written transfer of the obligation. Such a transfer must be approved by the lender, since the new owner's credit may or may not be as strong as the original owner/borrower's.

Overall, subject to means that the new owner takes on the responsibility of paying the existing mortgage or deed of trust, but the original debtor is still liable if the new owner fails to make payments.