Contracts
A 'novation' in a Louisiana real estate contract occurs when:
AA new listing agent replaces the original listing agent
BA new obligor (party) is substituted for the original, extinguishing the original obligation and creating a new one✓ Correct
CThe contract is amended to add new terms
DA new closing date replaces the original
Explanation
Novation is the substitution of a new party or obligation for an existing one, extinguishing the original obligation. In real estate, a novation might occur when a new buyer assumes a mortgage and is substituted for the original borrower with the lender's consent.
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