Contracts

In Hawaii, 'novation' in a real estate context means:

AA minor change to contract terms
BSubstituting a new contract or new party for an old one, releasing the original party from obligations✓ Correct
CExtending the contract deadline
DAdding a new clause to an existing contract

Explanation

Novation replaces an existing contract or party with a new one. When a buyer assumes a mortgage through novation, the lender releases the original borrower and substitutes the new borrower.

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