Contracts
Novation in a real estate contract means:
AA minor modification to the contract
BThe substitution of a new party or obligation, releasing the original party from liability✓ Correct
CExtending the closing date by mutual agreement
DAdding an inspection contingency after signing
Explanation
Novation replaces a party to the contract (or an obligation) with a new party, completely releasing the original party from liability. This is used when, for example, a new buyer assumes a seller's obligations.
Related Delaware Contracts Questions
- What is an 'option contract' in Delaware real estate?
- An earnest money deposit in a Delaware real estate contract is best described as:
- A bilateral contract in real estate is one where:
- What does 'tender of performance' mean in a Delaware real estate contract?
- Specific performance in a real estate contract lawsuit means:
- Which clause in a Delaware purchase contract allows the buyer to withdraw if they cannot obtain financing?
- What is 'assignment' of a real estate contract in Delaware?
- Rescission of a real estate contract means:
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →