Contracts
Novation in real estate contracts means:
AAdding a new contingency to an existing contract
BSubstituting a new party or obligation for an old one, releasing the original party✓ Correct
CVoiding a contract due to fraud
DModifying only the price in a signed contract
Explanation
Novation substitutes a new contract, obligation, or party for an old one. When applied to mortgage assumption, novation releases the original borrower from liability by replacing them with the new buyer, with lender consent.
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