Contracts

In Massachusetts, a 'novation' in a real estate contract context refers to:

AA new addendum to an existing agreement
BSubstituting a new party or obligation for an original one, releasing the original party from obligation✓ Correct
CA new listing agreement replacing an expired one
DThe final closing documents

Explanation

Novation substitutes a new contract, party, or obligation for an existing one, releasing the original party. In real estate, it might occur when a buyer's assumption of a mortgage releases the original borrower from liability.

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