What is the legal effect of a contract that does not assume the underlying obligations of the mortgage?

The concept of "cum onere," which translates to "with burden" in Latin, indicates that a contract or transfer of property is accepted along with all the existing obligations associated with it. In the context of a mortgage, if a contract is made that does not assume the underlying obligations of the mortgage, the buyer or new party does not take on those debts or responsibilities. Therefore, the correct answer, "cum onere," signifies that the property is being acquired with its associated burdens, including the existing mortgage obligations.

This principle is important in real estate transactions as it clarifies the responsibilities that a new buyer might inherit with a property purchase. In real estate law, when a buyer does not assume mortgage obligations, they are opting for a "non-assumption" scenario, but the correct term associated with taking over a property with its existing obligations is indeed "cum onere."

In contrast, terms like "non-assumption" specifically denote that the buyer does not take on the mortgage debt, which is a recognition of the absence of those obligations, yet does not capture the full nuance of accepting a property with its burdens. "Acquisition" and "absorption" are also less precise in this context, as they do not inherently express the