Contracts
What is 'novation' in Idaho real estate contract law?
AA new form of contract created by IREC
BThe substitution of a new obligation or party for an existing one, extinguishing the original obligation — requiring the consent of all parties✓ Correct
CAn amendment to an existing contract
DA contract for a new property replacing an expired contract
Explanation
Novation replaces an existing contract or contractual party with a new one, with the consent of all parties. In Idaho real estate, novation occurs when a buyer assumes a seller's mortgage and the lender releases the seller from all obligation — a true assumption with novation.
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