Accounting for Subject-To buy

[Dawn Anastasi]

This is something I've been wondering for a while and never asked the question because I've never been in this situation. But I'm curious so I've finally decided to post.

When you buy a property and get a regular loan, I understand the accounting entries for that (debit to property/land assets and credit to the note payable liability, among other things).

But say you buy a property "subject to". Meaning, you get the asset, but the liability isn't in your name. Are you still creating a "liability" to the seller in that case?