Contracts

In Kansas, a 'novation' in a real estate transaction means:

AA new offer replacing a counteroffer
BA new contract substituting a new party or obligation for an original party or obligation, releasing the original✓ Correct
CAn amendment to an existing contract
DA notation added to the deed

Explanation

A novation substitutes a new party or obligation for the original, releasing the original party. In mortgage assumptions, novation occurs when the lender formally releases the original borrower and accepts the new buyer.

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