Contracts
Novation in a real estate contract means:
AAdding a rider to an existing contract
BSubstituting a new party or obligation for an existing one, releasing the original party✓ Correct
CCanceling a contract without penalty
DExtending the closing date
Explanation
Novation replaces one party or obligation with a new one; in real estate, it may occur when a buyer assumes a mortgage and the lender releases the original borrower.
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