Subject to means subject to the existing financing.
On the HUD-1 closing document. it says “loans taken subject to the existing financing”.
Subject to is legal.
Subject to does give rise to the due on sale clause.
We use revocable Land Trusts with subject to.
Sometimes we use subject to plus a promissory note for any equity due to seller, but there are no payments on the note for at least 5 years.
