Contracts
A novation in a real estate contract occurs when:
ABoth parties agree to extend the closing date
BA new party is substituted for an original party, releasing the original party from obligations✓ Correct
CAn addendum is attached to the contract
DThe buyer waives an inspection contingency
Explanation
Novation substitutes a new party or obligation for an original one, releasing the original party from the contract. For example, a new buyer takes over the contract with the seller's consent, releasing the original buyer.
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