n NISM Certifications
X NISM Series X
Medium

In intra-family transfer of a mortgaged property under a family settlement, what happens to the liability?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The mortgage terms have to be renegotiated

  2. B

    Liability remains with the previous owner

  3. Liability gets carried over to the new owner

    Correct answer

  4. D

    Liability gets released on transfer

Why this is the answer

When a mortgaged property is transferred within the family, the liability attached to the mortgage is transferred to the new owner.

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