How can a seller ensure that a buyer complies with the mortgage in an assumption?

Having the buyer sign an assumption agreement is the correct method for a seller to ensure that the buyer complies with the mortgage in an assumption. An assumption agreement is a legally binding document in which the buyer agrees to take over the existing mortgage obligations from the seller. This agreement typically outlines the terms of the mortgage, the responsibilities of the buyer, and the seller's rights if the buyer defaults.

By utilizing this agreement, the seller can create a clear expectation of compliance and establish legal recourse if the buyer fails to meet the terms of the mortgage. This provides security for the seller, ensuring that the buyer acknowledges their obligation to the lender under the existing mortgage terms.

The other options do not effectively guarantee compliance with the mortgage. A warranty deed would transfer title but does not address the buyer's obligation to pay the mortgage. Allowing the buyer to change the terms can complicate the mortgage agreement and may not be permissible under the lender's guidelines. Creating a new mortgage would likely involve additional costs and could potentially complicate the transaction, rather than helping to ensure compliance with the original mortgage's terms.