What must be included in a mortgage contract for it to be assumed by a new buyer?

For a mortgage contract to be assumed by a new buyer, it is essential to have a specific clause that allows for the assumption of the loan. This assumption clause explicitly states the terms under which another party (the new buyer) can take over the existing mortgage obligations of the seller.

Without this provision, the lender retains the right to deny the assumption of the mortgage, as they may want to evaluate the creditworthiness of the new buyer or have specific conditions that need to be met. Including a specific clause for assumption helps protect the interests of both the lender and the seller while clarifying the process for the buyer.

While other elements like the buyer's credit score, terms of the existing loan, and possibly the seller's approval can be relevant in the overall dynamics of a mortgage transfer, they are not the fundamental requirement that establishes the legal possibility for a new buyer to assume the mortgage.