What is the primary function of a buyer in an assumption agreement in real estate?

The primary function of a buyer in an assumption agreement is to become responsible for an existing loan. In this scenario, the buyer takes on the obligation to repay the mortgage that is already in place on the property instead of obtaining a new loan. This means the buyer assumes the debt and the terms of the existing mortgage, which can be advantageous if the terms of that mortgage are favorable, such as a lower interest rate compared to current market conditions.

By assuming the loan, the buyer can potentially simplify the transaction process and avoid the costs associated with taking out a new mortgage. This arrangement often benefits both the buyer, who may be able to acquire the property without the hurdles of new financing, and the seller, who can offload their mortgage liability while facilitating the sale.

In contrast, the other options do not directly pertain to the function of the buyer in an assumption agreement; selling property, negotiating with sellers, and providing a down payment represent various aspects of real estate transactions but do not encompass the specific role defined in an assumption agreement.