Contracts
In Massachusetts, a 'novation' in the context of a real estate contract means:
AA minor change to the closing date
BSubstituting a new party or obligation for an old one, releasing the original party from liability✓ Correct
CAdding a contingency after the contract is signed
DAcknowledging the contract before a notary
Explanation
Novation substitutes a new contract or party for an original one, with all parties consenting to the release of the original party. In real estate, novation may occur when a buyer is replaced in a contract or when a mortgage assumption releases the original borrower from liability.
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