Contracts
Novation in a real estate context means:
AThe addition of new contingencies to a signed contract
BThe substitution of a new contract or new party, releasing the original party from obligations✓ Correct
CThe cancellation of a contract by mutual agreement
DAn automatic renewal of a lease
Explanation
Novation replaces an existing contract with a new one, or substitutes a new party for an original one, with all parties' consent. The original party is released from their obligations.
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