Final answer:
False. Assumption of a mortgage occurs when a buyer agrees to take over the outstanding balance of a seller's mortgage as part of the purchase transaction.
Step-by-step explanation:
False. An agreement by a purchaser to take over liability for payment of an existing note secured by a mortgage or deed of trust against the property is known as assumption of a mortgage. This occurs when a buyer agrees to take over the outstanding balance of a seller's mortgage as part of the purchase transaction. It is important to note that assumption of a mortgage requires the lender's approval and the buyer assuming the mortgage becomes responsible for making the mortgage payments.