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An assumption agreement is a legal arrangement in real estate transactions where the buyer takes over the seller's mortgage payments. For this to happen, all parties, including the lender, must agree to acknowledge the buyer as the new borrower responsible for the loan. However, most lenders do not release the seller from liability, meaning both the seller and buyer can be held accountable for the loan. Essentially, the assumption agreement involves the lender, the original borrower, and the buyer assuming the loan payments. If there are any questions regarding assumption agreements, further assistance is offered.