Existing Loan Assumption Clause Samples
The Existing Loan Assumption clause allows a buyer to take over the seller's current mortgage under its existing terms as part of a property transaction. In practice, this means the buyer steps into the seller’s position regarding the loan, often subject to lender approval and qualification requirements. This clause is particularly useful when the existing loan has favorable interest rates or terms compared to current market offerings, enabling smoother financing for the buyer and potentially expediting the sale process. Its core function is to facilitate property transfers without requiring the buyer to secure entirely new financing, thereby solving the problem of high borrowing costs or limited loan availability.
Existing Loan Assumption. Purchaser shall have entered into an ------------------------ agreement with Seller and the Lender, in form and substance reasonably satisfactory to Seller, whereby Purchaser assumes all of Seller's obligations and liabilities in connection with the Existing Debt, and the Lender releases Seller from any liabilities with respect to the Existing Debt from and after the Closing Date.
Existing Loan Assumption. (i) Purchaser and Seller shall cooperate with each other and with Lender in good faith and will otherwise use commercially reasonable efforts to obtain, execute and deposit with Escrow Agent prior to Closing an assumption agreement (the “Existing Loan Assumption Agreement”), upon commercially reasonable terms and conditions and acceptable to Seller and Purchaser in their reasonable discretion (provided, however, that the release described in clause (B) of the next sentence shall not be subject to Purchaser’s approval, as long as such release does not impose any obligations on Purchaser). The Existing Loan Assumption Agreement shall provide (A) for the assumption by Purchaser of that certain Promissory Note (the “Promissory Note”) in the original aggregate principal amount of Thirty-Five Million Dollars ($35,000,000) in favor of Wachovia Bank, National Association (“Lender”), secured by that certain Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing in favor of First American Title Insurance Company, as trustee for the benefit of Lender, dated February 23, 2007, and recorded on February 26, 2007, as Instrument No. 2007026007 in the Official Records of the District of Columbia (the “Deed of Trust” and together with the Promissory Note and all related loan documents, the “Existing Loan Documents”) and (B) for the release of all obligations of Seller and its Affiliates accruing on and after the Closing Date under the loan evidenced thereby (the “Existing Loan”) (including, without limitation, the release of all of the obligations of Kimpton Development Opportunity Fund, L.P., accruing on and after the Closing Date under that Guaranty in favor of Lender dated February 23, 2007 (the “Guaranty”)).
(ii) Purchaser shall comply with all reasonable requirements of Lender with respect to such the Existing Loan Assumption Agreement, including, without limitation, the provision of financial information for Purchaser and its Affiliates and the provision of a guaranty to replace the Guaranty by an entity acceptable to Lender. Purchaser and Seller shall each be responsible for the payment of one-half of any and all costs and fees required by the Lender (except for the legal expenses of either Party, which shall be that Party’s sole obligation) related to such application for assumption including, without limitation, any loan assumption fees.
(iii) Prior to Closing, Seller shall use commercially reasonable efforts to cause Lender to deposit with Escro...
Existing Loan Assumption. Existing Lender shall have granted the approvals and delivered the documents more particularly set forth and required by Section 8.1.10 hereof.