Contracts
Novation in a real estate contract context means:
AAdding an addendum to the existing contract
BSubstituting a new party or obligation for an original party or obligation, releasing the original✓ Correct
CExtending the closing date
DAdding earnest money to a contract
Explanation
Novation substitutes a new contract, party, or obligation for an existing one, with the consent of all parties. The original obligation is extinguished. For example, a lender may consent to substitute the buyer's name for the seller's on an existing mortgage.
Related Iowa Contracts Questions
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