Is a grantor entitled to reimbursement from the buyer for payments made on the mortgage?

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Prepare for the Real Estate Transactions Exam. Study with comprehensive questions, detailed hints, and explanations to enhance your knowledge and pass the exam with ease. Get exam-ready today!

In real estate transactions, the relationship between the grantor (the seller) and the buyer regarding mortgage payments is generally governed by the terms of the sale and the mortgage agreement. Typically, once the property is transferred to the buyer, the buyer assumes responsibility for the mortgage payments, unless otherwise agreed.

When a grantor sells a property and the mortgage is not explicitly assumed by the buyer, the grantor retains ownership of the mortgage obligation. This means that even if the grantor continues to make the mortgage payments after the property is transferred, they do not automatically have a right to reimbursement from the buyer. The buyer is usually considered responsible for the mortgage payments from the moment of purchase unless there is an agreement stating otherwise.

Thus, the correct answer reflects that, as a general rule, the grantor is not entitled to reimbursement from the buyer for payments made on the mortgage in standard scenarios. Specific conditions surrounding the assumption of the mortgage by the buyer or explicit agreements might alter the situation, but these are not considered default scenarios in real estate transactions.

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