Contracts

In Kansas, a 'novation agreement' during a real estate transaction most commonly arises in:

AModification of listing agreement prices
BMortgage assumptions where the lender releases the original borrower and substitutes the new buyer✓ Correct
CCommission negotiations between agents
DTitle company procedural changes

Explanation

Novation in mortgage assumptions occurs when the lender formally accepts the new buyer as the sole obligor, releasing the original borrower (seller) from the mortgage debt.

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