Contracts
A novation in a Michigan real estate transaction refers to:
AAmending specific terms of an existing contract
BSubstituting a new party or obligation for an existing one, releasing the original party✓ Correct
CAdding supplemental addenda to the purchase agreement
DConverting a verbal agreement to a written contract
Explanation
Novation is the substitution of a new contract or party for an existing one, with the consent of all parties. In real estate, loan assumption with novation releases the original borrower from liability; without novation, the original borrower remains liable.
Related Michigan Contracts Questions
- In Michigan, a 'bilateral contract' means:
- A counteroffer in Michigan terminates the original offer and:
- In Michigan, a 'title contingency' in a purchase agreement allows the buyer to:
- In Michigan, a lease option agreement gives the tenant:
- A Michigan buyer who defaults on a purchase agreement may face which of the following remedies from the seller?
- In Michigan, when a seller accepts a buyer's offer 'subject to attorney review,' it means:
- Under Michigan law, an offer to purchase real estate becomes a binding contract when:
- In Michigan, a 'right of rescission' for a buyer applies automatically under which federal law for refinancing a primary residence?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →