Question about a Purchase and Sale Contract

[Nick Tiscareno]

Was up bp,

Found a house for sale by owner off Craigslist, that I'm about to put under contract.  

"EXISTING MORTGAGE (S): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. **Escrow balance has been calculated into the price and will transfer to the Buyer along with title. Buyer will take title subject to his debt.**"

This may seem like an obvious question but would like some clarification on the above part of the contract I enclosed with **  **.  

This is my first wholesalindeal as you can tell.